Question

2.P Q and R were partners in a firm sharing profits and losses in the ratio of 3.2.1. At the time of
admission of a partner, the goodwill of the firm was valued at Rs.4,00.000. The accountant of the
um poased the entry in the books of accounts and thereafter showed goodwill at Rs.4,00,000 as
an asset in the balance sheet. Was he correct in doing so? Why?

Answer 1

Answer:

Yes he was correct doing so