Accounting treament

A/c entries 594 views 2 replies

Guest

Purchase good will from X company for 10 years for 100 lakhs (brand name)

what will be the accountanting treament entry per year will be come that is 100 lakhs/10 = 100000 per year

or Consolidated entry for first year for
100 lakhs for first year

(How to write of this expenditure some part for every year or total amount in one year )

Replies (2)

Guest

IT SHOULD BE WRITTEN OFF OVER THE PERIOD OF YEARS. DEBIT BRAND NAME AND CREDIT PARTY OR BANK OR CASH AS THE CASE MAY BE. BRAND NAME IS FIXED ASSET. EVERY YEAR WRITE OFF PROPORTIONALLY OVER 10 YEARS.