doubt in partnership goodwill

Accountancy

Here page 8.46 illustration 8 and also similar model Illustration 7 they only clearly gave that B gained and A sacrificied Then entry should be A'ac dr To B's ac Why is it reverse?

Harshitha Kalidindi

CA Final

★ 51K+

05-Nov-21 06:30

592

Answers (3)

Goodwill is an asset means it has debit balabce. That means if u gain the goodwill it should be debited. For asset if we debit, asset value will increase

Likhitha Sivani

CA Final

★ 14K+

05-Nov-21 07:53

Thnk u

Bangari chowdary

CA Inter

★ 24K+

05-Nov-21 20:55

B has gained, so it will compensate to A. For compensating B's account is debited and A's credited

Sahibdeep Singh

CA Inter

★ 14K+

06-Nov-21 10:31