CBSE Sample Papers

CBSE Sample Papers from CBSEtuts.com

Accounting Standard 10: Accounting for Fixed Assets and Goodwill

March 9, 2019 by admin Leave a Comment

According to AS 10 Goodwill should be recorded in the books only when some consideration in money or money’s worth has been paid for it. In other words no goodwill account should be raised in case of internally generated goodwill.

When the new partner brings a portion of the required amount of goodwill.  In such a case, the amount brought in by the new partner should be shared by the old partners in the sacrificing ratio nd the portion of amount of goodwill not brought in by the new partner thould be adjusted through the capital accounts of partners by debiting new partner’s capital account with the amount and crediting the old partners’ capital accounts in their sacrificing ratio.

Where the new partner privately pays the amount of goodwill to old partners: In this case, no entry should be passed in the books of the firm. The amount to be paid to each partner should be calculated as per the profit-sacrificing ratio.

Filed Under: Accounting Tagged With: Accounting for Fixed Assets, Accounting for Goodwill, Accounting Standard 10

Leave a Reply Cancel reply

Your email address will not be published. Required fields are marked *

Recent Posts

  • Note Making Class 11 CBSE Format, Examples
  • Unseen Passage For Class 11 Literary CBSE With Answers
  • Unseen Passage for Class 11 Discursive CBSE with Answers
  • Unseen Passage for Class 11 Factual CBSE With Answers
  • Rearrange Jumbled Sentences for Class 11 CBSE with Answers
  • Error Correction Exercises for Class 11 CBSE with Answers
  • Sentence Transformation Exercises for Class 11 CBSE with Answers
  • Editing Exercises for Class 11 CBSE with Answers
  • Active and Passive Voice Exercises for Class 11 with Answers CBSE
  • Tenses Exercises for Class 11 CBSE With Answers

Copyright © 2021 · Magazine Pro Theme on Genesis Framework · WordPress · Log in