why is new partner share of goodwill transfer to its current account ? For example in illustration 64 ts grewal 2015
Dear Student,
When the new partner does not bring his share of goodwill in cash, then the goodwill can be adjusted either through Incoming Partner' Current/Capital Account. Generally, it is adjusted through the capital account, however, the alternative option is to adjust the goodwill through Current Account.
Hope this clarifies your doubt.
Keep posting!!
When the new partner does not bring his share of goodwill in cash, then the goodwill can be adjusted either through Incoming Partner' Current/Capital Account. Generally, it is adjusted through the capital account, however, the alternative option is to adjust the goodwill through Current Account.
Hope this clarifies your doubt.
Keep posting!!