MyQuestionIcon

1

You visited us 1 times! Enjoying our articles? Unlock Full Access!

When Goodwill Exist in the Business

Goodwill is r...

Question

Goodwill is recorded in the books only when it is …………. and the goodwill account cannot be raised on its own.

A

None of the above

No worries! We‘ve got your back. Try BYJU‘S free classes today!

B

Raised

No worries! We‘ve got your back. Try BYJU‘S free classes today!

C

Purchased

Right on! Give the BNAT exam to get a 100% scholarship for BYJUS courses

D

Self generated

No worries! We‘ve got your back. Try BYJU‘S free classes today!

Open in App

Solution

The correct option is C
Purchased

Goodwill is recorded in the books only when it is purchased and the goodwill account cannot be raised on its own.

Suggest Corrections

thumbs-up

1

Similar questions

Q. When required amount for premium for goodwill is not brought in by new partner, goodwill account is raised in the books of the firm by debiting goodwill account and crediting partners capital account in old profit sharing ratio and written off in ______ if it agreed not show goodwill in the books of the firm OR ALTERNATIVELY premium for goodwill should be adjusted through partners capital account by debiting new partners share of goodwill to his account and crediting old partners capital accounts in _________.

Q. Under which of the following method Goodwill account is raised in the books of accounts.

Q. Objective Type Questions :
Answer in one sentence only.

When is goodwill account raised in the books of the firm?

Q. When goodwill is raised on the retirement of a partner, it is credited to ______________.

Q. State 'True' or 'False'

If the goodwill account raised up, goodwill account is debited.

View More

Join BYJU'S Learning Program

similar_icon

Related Videos

lock

Retirement of a Partner - II

ACCOUNTANCY

Watch in App

explore_more_icon

Explore more

When Goodwill Exist in the Business

Standard XII Accountancy

Join BYJU'S Learning Program

CrossIcon