When Goodwill is not purchased goodwill account can :
1 point
Option 1 Never be raised in the books
Option 2 Be raised in the books
Option 3 ) Be partially raised in the books
Option 4 Be raised as per the agreement of the partners
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Answer:
Naver raised in the book
Explanation:
It is right
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When Goodwill is not purchased, a goodwill account can never be raised in the books. (Option 1)
- The goodwill of a business is an intangible asset that is recorded in the company's books of accounts only when it is purchased during the acquisition of another business.
- Such goodwill is also reflected in the balance sheet at the end of the year.
- The amount or value of purchased goodwill can be calculated by deducting the market value of the acquired business' assets from the purchase amount.
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