Accountancy, asked by bimalpahari6638, 1 year ago

Q1. State the reason of contributing for goodwill by a new partner at the time of his admission.

Answers

Answered by cbpjnvp9751k

Because the new partner is going to share the profit of the firm in future. This profit is the result of Goodwill maintained by the old partners. Hence the new partner is required to bring the amount of Goodwill for his share.

Previous Question

Next Question

Similar questions

Science, 7 months ago

Question/Answers 1. What is formula ? Explain with the help of examples...

English, 7 months ago

Erosion of America's farmland by wind and water has been a problem since settlers first put the prairies and grasslands under the plow in the nineteenth century. By the 1930s, more than 282 million acres of farmland were damaged by erosion. After 40 years of conservation efforts, soil erosion has accelerated due to new demands placed on the land by heavy crop production. In the years ahead, soil...

Chemistry, 7 months ago

Stoichiometry question...

Accountancy, 1 year ago

Q.4 X, Y and Z are partners sharing profits and losses in the ratio of 5: 3 : 2, decided to share profits and losses equally with effect from 1st April, 2016. On that date, the goodwill appeared in the books at `12,000. But it was revalued at `30,000. Pass the necessary Journal entries.

Accountancy, 1 year ago

Q.11. Find out the normal rate of return if the Super Profits are `25,000, Average Profits are `75,000 and Goodwill of the firm is `50,000.

English, 1 year ago

Write on speech decipline save future student...

Physics, 1 year ago

problems about coloumbs law...

Hindi, 1 year ago

10 lines on republic day...