Treatment of goodwill
This query is : Resolved
25 September 2012
A Pvt. Ltd. Co. purchased a partnership firm paying Rs.10 Lacs. On the date of Purchase the Partnership firm is having an assets of Rs.198868.56 & a liability of Rs.12000.
Now i want to know what should be the accounting treatment of Goodwill in the books of Pvt. Ltd. Co.
Please help me..
Now i want to know what should be the accounting treatment of Goodwill in the books of Pvt. Ltd. Co.
Please help me..
25 September 2012
If you are following net asset method then the goodwill will be accounted around Rs. 813131.44 ((1000000 - (198868.56-12000))
whixh you should account it as asset in pvt co. as you have purchased the business of firm by paying more than what the net assets were.
whixh you should account it as asset in pvt co. as you have purchased the business of firm by paying more than what the net assets were.
You need to be the querist or approved CAclub expert to take part in this query .
Click here to login now
Click here to login now
Similar Resolved Queries
Unanswered Queries
- Tax on Deemed Capital Gain
- Exiting partner in partnership firm in gst portal
- CLOSING STOCK QUERY
- Type of Capital Gain
- Error in uploading Form 10BD
- Applicability of Books of Account for Commission Income (Sections 194D & 194H)
- TDS _Long term Capital Gain ref.sec 214 Table 2
- Consequences of Non-Deduction of TDS under Income Tax???????????????
- Difff in ais receipts and gst turnover
- Grand in aid
- Account freezed for Ineligible ITC Scrutiny for GST Annual Return
- TDS on property - Form 141 query
- Seeking Advice: High Tax Shortfall on Job Switch + Let-Out House Property Loss in FY 2025-26
- Housing Society-ITR5
- TDS on Rent received on redevelopment of building
- Indian IT Portal issue in computing tax as per UK-India DTAA
- Capital Gains on sale of residential flat
- Upload Level ValidationITR3Category of Defect B/D
- PF Taxable Income
- Clarification on Tax Audit Applicability and Reporting of F&O Transactions in ITR-3
Trending Online Classes
-
DT & Audit (Exam Oriented Fastrack Batch) - For May 26 Exams and onwards Full English
CA Bhanwar Borana & CA Shubham Keswani
Subscribe to Pro
Join an elite circle of professionals
CAclubindia
