Home › Bihar Board Class 12 (Commerce) › Accountancy › Accounting for Partnership Firms: Goodwill › If goodwill credited to old partners is left in …
If goodwill credited to old partners is left in the business, the additional entry is
AA debit to Bank
BA debit to Reserve
CNone is required
DA credit to Goodwill
Answer & Solution
Correct answer: C. None is required
Nothing leaves the firm when the amount stays in capital accounts, so no further entry arises.
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