Goodwill appears in the books of a business only if it has been
purchased at a certain price
raised in connection with the admission of a new partner
raised to account for the true value of a business on the death of a partner
raised in order to prevent the balance sheet showing that the business is insolvent
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Discussions (5)
goodwill itself refer to d commercial advantages a company has over its competitor. in patnership when there is a newly admmitted patner, such a patner is require to pay for goodwill he is to be enjoying as a fact that the business has been in existence and it is well known
Yes, that is d correct ans from the provided options. Bcoz Goodwill can also appear when there are changes in the profit sharing ratio. which may arise when the contribution of the partners changes. Any objection to this pls?
