partnership

This query is : Resolved

Report Abuse Follow Query Ask a Query

CA Rashi Agrawal

CA Rashi Agrawal (Querist)
Follow

30 June 2008 explain me the accounting treatment of goodwill in a partnership firm.

MANAS ROUT

MANAS ROUT (Expert)
Follow

30 June 2008 same as per corporate assessee.

Amit Bajaj

Amit Bajaj (Expert)
Follow

01 July 2008 How is goodwill arising? is it on admission of partner, or leaving, or death.

Goodwill a/c ..Dr
To Capital of partners account .. Cr

Chintan Gajjar

Chintan Gajjar (Expert)
Follow

01 July 2008 It is important that how goodwill have been arised.
If Goodwill increased due to increase in the market prestige / share.
Goodwill Dr.
To Existing Partners' Capital A/c

If Goodwill incase of Admission / Retirement of partner/s
Goodwill Dr.
TO Old Partners' Capital A/c
If Partners decided not to show Goodwill in Balance Sheet then,
New Partners Capital A/c
To Goodwill A/c

Alternate Method to pass above two entries
New Partners Capital A/c
To Old Partners Capital A/c