banner_ad

Premium on goodwill

Others 624 views 2 replies
how partner record the premium on goodwill paid to firm in his personal balance sheet??
Replies (2)

When a partner pays a premium for the purchase of goodwill in a partnership firm, the transaction would be recorded in their personal balance sheet as follows:

Debit: Cash (or Bank) account for the amount paid for the goodwill premium.

Credit: Investment in the partnership account for the amount paid for the goodwill premium.

This entry records the cash outflow from the partner's personal account and the corresponding increase in their investment in the partnership. The investment in the partnership account represents the partner's ownership interest in the firm, and the goodwill premium paid increases the value of that ownership interest.

Is it partnership? That's bull crap to me in Indas. Without a premium, you buy a company, it's expensed. Everything is a premium over net identifiable assets. Bargain purchase is expensed and a premium paid is capitalised. 


CCI Pro

Leave a Reply

Your are not logged in . Please login to post replies

Click here to Login / Register  

Company
ARTICLESHIP 08 June 2026
Internal & Taxation Article

O P Bagla & Co LLP

New Delhi

CA Inter

View Details
Company
29 May 2026
Accounts assistant

Shubh Consultancy

Mumbai

Graduate (Any)

View Details
Company
26 May 2026
Education Content Creator

Adyayam Education LLP

Bengaluru

CA Foundation

View Details
Company
18 May 2026
MIS Executive

Primarc Pecan Retail Limited

Mumbai

B.Com

View Details
Company
19 May 2026
Fundraising Expert

MentorsWorld Ventures Private Limited

Ahmedabad

Others

View Details
Company
Featured 28 May 2026
SEMI QUALIFIED/ CA DROPOUTS/ ARTICLES

T R SOOD & CO

New Delhi

CA Inter

View Details
Company
21 May 2026
Associate

PWC

Kolkata

CA

View Details
Company
Featured 26 May 2026
Account Executive

SMJ global advisors pvt ltd

New Delhi

B.Com

View Details