Accounting for IGCSE & O level - Preparation Of Financial Statements (Section 26 - No. 4)
When is goodwill written off in a new partnership formation?
Immediately in the year of the formation.
Over the useful life of the asset.
Never, if the partnership is going to make profit.
When partners are no longer interested.
Explanation
Goodwill is written off to the partner's capital accounts immediately if the partnership is just starting.
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