Question

according to which As only purchase goodwill be recorded in the books of accounts ?​

Answer 1

Answer:

accounting standard 26

Step-by-step explanation:

Goodwill - It is the value of reputation of a firm in respect of profits expected in future over and above the normal rate of profits. As per the provisions of accounting standard 26, goodwill is recorded in books only when the goodwill is purchased during business purchase. it means money or money's worth should be paid for acquiring goodwill to record it in books.