Accounting for IGCSE & O level - Preparation Of Financial Statements (Section 6 - No. 23)
What is the accounting treatment for goodwill when a new partner is admitted?
Goodwill is recorded as an asset on the balance sheet.
Goodwill is written off against the partners' capital accounts.
Goodwill is only recorded if the new partner contributes capital.
Goodwill is not recorded in the partnership.
Explanation
Goodwill is written off against the partners' capital accounts.
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