The goodwill brought in by a new partner is shared by the old partners. (State True or False)
Answers
Answered by
3
YES...
IS SHARED BETWEEN OLD PARTNERS
IS SHARED BETWEEN OLD PARTNERS
Answered by
2
Answer:
True
Explanation:
The goodwill brought in by a new partner is shared by the old partners. - True
As per the AS 10, Goodwill will only be recorded in the books when some consideration has been paid for in money or money's worth. It also suggests that goodwill should not be raised in the company's books in the event of partner entry, pension or death of a partner.
Old partners have constructed up the goodwill that exists for the company when fresh partner is admitted. Because the old partners in his favour sacrifice their future share of earnings. That's why the fresh partner's goodwill is given to sacrificing partners in line with their sacrifices.
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