Question : In the case of Non–purchased goodwill account can:
Option 1: Be partially raised in the books
Option 2: Never be raised in the books
Option 3: Both 1 and 2
Option 4: None the these
Answer (1)
23rd Jan, 2024
Correct Answer: Be partially raised in the books
Solution : Answer = None the these
In the case of non-purchased goodwill, it cannot be raised in the books because non-purchased goodwill arises from factors like reputation, location, etc., which cannot be quantified and recorded in the accounts as they do not involve any monetary transaction.
Hence, the correct option is 1.
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