Home › Bihar Board Class 12 (Commerce) › Accountancy › Accounting for Partnership Firms: Goodwill › Besides admission, retirement and death, goodwil…
Besides admission, retirement and death, goodwill of a partnership may also be valued at
AHiring of new staff
BChange of firm's bank
CAmalgamation of firms
DRenewal of trade licence
Answer & Solution
Correct answer: C. Amalgamation of firms
When two partnership firms merge, the value of each firm's goodwill is needed to settle the terms.
Related questions
Value that stays with a business even after its owner leaves is which goodwill?Institutional and professional are the two types ofA company pays $50 for a business whose identifiable net assets have a fair value of $38. Private companies in the United States may elect to amortise goodwill overIf the fair value of goodwill falls below its historical cost, the firm must recordUnder IFRS and US GAAP, goodwill of public companies isUnder purchased goodwill accounting, goodwill that a firm builds on its own isGoodwill is recorded in accounts only when a business is