A, B, C and D were partners in ratio 4:3:2:1. They admit E forth share. E brought Rs 10,000 as his share of goodwill. The accountant showed goodwill of the firm at Rs 1,00,000 in the books. Was the Accountant correct in doing so? Give reason.
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Answered by
1
Answer:
The accountant is not correct.
Reason: It is a self-generated goodwill and only purchased goodwill is recorded in the books of accounts as per AS-26.
Explanation:
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Answered by
1
Explanation:
The accountant is not correct.
Reason: It is a self-generated goodwill and only purchased goodwill is recorded in the books of accounts as per AS-26.
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