Question

How is goodwill brought in by an incoming partner treated in the books of accounts

Answer 1

Cash A/c Dr.

To Premium for goodwill A/c

(Being premium for goodwill brought in by new partner)

[ Hyy incoming partner pays Premium for Goodwill not Goodwill]

HOPE IT WILL HELP YOU.....

Answer 2

The generosity sum got by the newcomer isn't appeared in the books of record.

sure it will be very effective.

Numerous events are there where the measure of altruism isn't brought into the firm yet the old accomplices are paid by the new accomplices as though it is an outside exchange.