Premium on goodwill

how partner record the premium on goodwill paid to firm in his personal balance sheet??
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Quick Summary
When a partner pays a premium for goodwill in a firm, it's recorded on their personal balance sheet. The cash paid is debited, and the investment in the partnership is credited. This entry reflects the cash outflow and the increased value of the partner's ownership in the firm. While expensing goodwill is common when acquiring a company, a premium paid for goodwill in a partnership is typically capitalised as an investment.

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. 

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