Accounting Treatment for Goodwill On Admission Of Partners(Part3of3)
Earlier Method 1 and Method 2 have been discussed.
The third method is as follows:
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Method No. 3: Goodwill is NOT recorded in the books and paid DIRECT to the existing/old partners |
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· No record in the partnership’s books · Least advantageous to incoming partners as the money which he pays for goodwill is not kept in the business.
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