Accountancy, asked by bhai9924, 11 months ago

13. How will you record in the books of firm, if premium for goodwill is brought in
cash by the new partner?

Answers

Answered by krishnajana295

Explanation:

Premium Method

Under this method, when the incoming partner brings his share of goodwill in cash, the existing partners share it in the sacrificing ratio. However, when the amount of goodwill is paid privately by the new partner to old partners privately in cash, no entry is passed in the books of the firm.

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