Question : Goodwill is not accounted in the books if:
Option 1: It is a Purchased Goodwill
Option 2: It is a Self Generated Goodwill
Option 3: It is decided to be accounted by the Partners
Option 4: Its amount is paid by the Gaining Partner
Correct Answer: It is a Self Generated Goodwill
Solution : Goodwill is not accounted in the books of accounts in case of self-generated goodwill. Hence, the correct option is 2.
Question : Increase in value of Goodwill means___________
Question : If the new partner brings the goodwill amount in cash and the goodwill account still has a balance, the goodwill account is wiped down among the previous partners in -
Question : At the time of reconstitution of the firm by way of change in profit sharing ratio/ admission of a partner/retirement of a partner/death of a partner, Gaining partners compensates the sacrificing partner by paying a proportionate amount of
Question : Which of the statements is true?
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