How does the factor ‘Location’ affect the goodwill of a firm? Post category:Accountancy Reading time:1 mins read SOLUTION Better location will attract more customers resulting in increase in sales and profits which in turn will result in increase in the value of goodwill. Please Share This Share this content Opens in a new window X Opens in a new window Facebook Opens in a new window Pinterest Opens in a new window LinkedIn Opens in a new window Viber Opens in a new window VK Opens in a new window Reddit Opens in a new window Tumblr Opens in a new window Viadeo Opens in a new window WhatsApp Read more articles Previous PostWhy is ‘Goodwill’ considered an ‘Intangible Asset’ but not a ‘Fictitious Asset’? (ISC 2020) Next PostHow does the factor ‘Efficiency of Management’ affect the goodwill of firm? You Might Also Like Name the methods according to which partner’s capital accounts are maintained. September 23, 2022 Pass entries in firm’s Journal for the following on admission of a partner: (i) Unrecorded Investments worth Rs. 20,000 are to be accounted. (ii) Unrecorded liability towards suppliers for Rs. 5,000 is to be accounted. (iii) An item of Rs. 1,600 included in Sundry Creditors is not likely to be claimed and hence should be written back. August 1, 2022 A and B are partners in a firm sharing profits and losses in the ratio of 3 : 2. They admit C into partnership for 1/5th share. C brings Rs. 30,000 as capital and Rs. 10,000 as goodwill. At the time of admission of C, goodwill appeared in the Balance Sheet of A and B at Rs. 3,000. New profit-sharing ratio of the partners will be 5 : 3 : 2. Pass necessary Journal entries. August 1, 2022 Leave a Reply Cancel replyYou must be logged in to post a comment.
Pass entries in firm’s Journal for the following on admission of a partner: (i) Unrecorded Investments worth Rs. 20,000 are to be accounted. (ii) Unrecorded liability towards suppliers for Rs. 5,000 is to be accounted. (iii) An item of Rs. 1,600 included in Sundry Creditors is not likely to be claimed and hence should be written back. August 1, 2022
A and B are partners in a firm sharing profits and losses in the ratio of 3 : 2. They admit C into partnership for 1/5th share. C brings Rs. 30,000 as capital and Rs. 10,000 as goodwill. At the time of admission of C, goodwill appeared in the Balance Sheet of A and B at Rs. 3,000. New profit-sharing ratio of the partners will be 5 : 3 : 2. Pass necessary Journal entries. August 1, 2022