Treatment of Goodwill as per AS
This query is : Resolved
14 June 2008
If 1 partner Mr.X retires from Firm having 3 partners. Total capital of Mr.X in firm is 10 lacks, but on retirement Firm pays him Rs. 11 lacks.Whether Rs. 1 lack can be treated as Goodwill as per Accounting Standard and shown under fixed asset in Balance Sheet ( as this is Goodwill for which firm has paid ) or will be considerd as Internally generated goodwill
19 June 2008
The premium paid for the retiring partner towards goodwill Rs. 1 lakhs should not be treated as an asset.
It should be adjusted to other partners in the Gaining ratio i.e. debited to the continuing partners in the gaining ratio.
However, It is an internally generated goodwill only.
It should be adjusted to other partners in the Gaining ratio i.e. debited to the continuing partners in the gaining ratio.
However, It is an internally generated goodwill only.
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