Accountancy, asked by sangjigthinsel, 11 months ago

why premium for goodwill paid by the incoming partner will not be recorded in the books of account? ​

Answers

Answered by damodarchoudhury
2

  • premium for goodwill paid by the incoming partner because premium of goodwill is compensate to the existing or old partner for the loss of their share in future profit of the busines.

  • premium for goodwill is a personal income for old partner. So it is not recorded in the book's of account.

I hope it Wii be helpful for you...

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