Amalgamation

Originally posted by : AKSHIT MALHOTRA
	WHILE SOLVING AMALGAMATION OF PARTNERSHIP FIRM SUM IF IT IS SPECIFIED THAT GOODWILL WILL APPEAR IN THE BALANCE SHEET OF THE NEW COMPANY THEN WHAT WILL BE THE DIFFERENCE IN GOODWILL ADJUSTMENT AS COMPARED TO WHEN GOODWILL WAS NOT TO BE APPEAR IN BALANCE SHEET OF THE NEW COMPANY.

If goodwill not shown in the balance sheet of the new company it will be adjusted to the old partners capital account.

regards

thnx harishVJ  but if goodwill is to appear in the balance sheet ?then

Originally posted by : HarishVj
	It is credited to all partners(including new partner)in new profit sharing ratio

agree

BUT IF THERE IS NO NEW PARTNER.

FOR EX-RAM & KUMAR ARE PARTNERS OF RK & CO.AND KUMAR &MANGAL ARE PARTNERS OF KM & CO.BOTH OF THESE FIRMS ARE AMALGAMATED.

NOW TELL ME WHAT WILL BE THE TREATMENT OF GOODWILL IF IT IS TO BE APPEAR & IF IT IS NOT TO BE APPEAR.

GOODWILL OF RK & CO Is Rs.2,40,000 & GOODWILL OF KM & CO. IS RS 2,00,000.