Explain how is goodwill treated in the books of accounts when the incoming partner does
not bring his share of goodwill in cash. What journal entries are to be passed when asset and
liabilities are revaluated at the time of admission of a new partner?
Answers
Answered by
0
Answer:
Explain how is goodwill treated when the incoming partner does not bring his share of goodwill in cash
ADVERTISEMENTS: The new partner does not bring in cash for goodwill as such; but an adjustment entry is passed by which the new partner's capital account is debited with his share of goodwill and the amount is credited to old partners' capital accounts in the ratio of sacrifice.
Similar questions