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Under what circumstances premium for goodwill paid by the incoming partner would never be recorded in the books of account?

  • Post category:Accountancy
  • Reading time:1 mins read

SOLUTION

When the incoming partner pays the amount of premium for goodwill in cash to the old partners privately outside the business, no entries are passed for it







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Previous PostState the need for treatment of Goodwill on admission of a partner.
Next PostWhat is meant by “Hidden Goodwill”? (C.B.S.E. 2017, Comptt.)

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