Commerce Exam > Commerce Notes > Accountancy Class 12 > PPT : Treatment of goodwill in Partnership Accounts - 2
PPT : Treatment of goodwill in Partnership Accounts - 2 | Accountancy Class 12 - Commerce PDF Download
| Download, print and study this document offline |
Please wait while the PDF view is loading
Page 1 Treatment of Goodwill in Partnership Accounts CPT Section A Fundamentals of Accountancy Chapter 8 Unit 2 – Part 2 CA. Ajay Lunawat Page 2 Treatment of Goodwill in Partnership Accounts CPT Section A Fundamentals of Accountancy Chapter 8 Unit 2 – Part 2 CA. Ajay Lunawat Learning objectives Need for valuation of Goodwill Valuation of Goodwill in case of admission of partner Accounting treatment of goodwill in case of • admission of a new partner • change in profit sharing ratio • retirement or death of a partner Page 3 Treatment of Goodwill in Partnership Accounts CPT Section A Fundamentals of Accountancy Chapter 8 Unit 2 – Part 2 CA. Ajay Lunawat Learning objectives Need for valuation of Goodwill Valuation of Goodwill in case of admission of partner Accounting treatment of goodwill in case of • admission of a new partner • change in profit sharing ratio • retirement or death of a partner Need for valuation of Goodwill Whenever there is any change in the existing relationship of the partners inter se, some partners have to sacrifice their future profit and some others would gain Gaining Partner Should compensate Sacrificing Partner Page 4 Treatment of Goodwill in Partnership Accounts CPT Section A Fundamentals of Accountancy Chapter 8 Unit 2 – Part 2 CA. Ajay Lunawat Learning objectives Need for valuation of Goodwill Valuation of Goodwill in case of admission of partner Accounting treatment of goodwill in case of • admission of a new partner • change in profit sharing ratio • retirement or death of a partner Need for valuation of Goodwill Whenever there is any change in the existing relationship of the partners inter se, some partners have to sacrifice their future profit and some others would gain Gaining Partner Should compensate Sacrificing Partner Valuation of Goodwill in case of admission of partner • When a new partner is admitted into a partnership, certain adjustments in accounts become necessary New partner will acquire a share in the profits The old partners will stand to lose Page 5 Treatment of Goodwill in Partnership Accounts CPT Section A Fundamentals of Accountancy Chapter 8 Unit 2 – Part 2 CA. Ajay Lunawat Learning objectives Need for valuation of Goodwill Valuation of Goodwill in case of admission of partner Accounting treatment of goodwill in case of • admission of a new partner • change in profit sharing ratio • retirement or death of a partner Need for valuation of Goodwill Whenever there is any change in the existing relationship of the partners inter se, some partners have to sacrifice their future profit and some others would gain Gaining Partner Should compensate Sacrificing Partner Valuation of Goodwill in case of admission of partner • When a new partner is admitted into a partnership, certain adjustments in accounts become necessary New partner will acquire a share in the profits The old partners will stand to lose Example of admission If their profits are Rs. 20,000 A will get Rs. 12,000 B will get Rs. 8,000 A and B are partners sharing profits in the ratio of 3:2Read More
|
47 videos|178 docs|56 tests
|
FAQs on PPT : Treatment of goodwill in Partnership Accounts - 2 - Accountancy Class 12 - Commerce
| 1. What is goodwill in partnership accounts? |  |
Ans. Goodwill in partnership accounts refers to the intangible asset that arises when a partnership firm has a reputation, customer base, brand value, or any other unique advantage that gives it a competitive edge in the market. It represents the value of the firm's positive reputation and its ability to generate higher profits compared to its competitors.
| 2. How is goodwill treated in partnership accounts? | |
Ans. Goodwill is recorded as an asset in the partnership's balance sheet. It is initially valued based on either the agreed amount between partners or calculated using a specific formula. The value of goodwill is then distributed among the partners' capital accounts in their profit and loss sharing ratio. This distribution allows the partners to share in the benefits of the firm's goodwill.
| 3. Can goodwill be sold or transferred in a partnership? | |
Ans. Yes, goodwill can be sold or transferred in a partnership. If a partner decides to leave the partnership, the remaining partners can purchase the departing partner's share of the goodwill based on its agreed value. Similarly, if a new partner joins the partnership, they may be required to contribute capital equivalent to their share of the existing goodwill.
| 4. How is the value of goodwill determined in partnership accounts? | |
Ans. The value of goodwill in partnership accounts can be determined through various methods such as the average profits method, super profits method, capitalization method, or the discounted future earnings method. These methods consider factors like historical profits, future earnings potential, industry standards, and market conditions to arrive at a reasonable value for goodwill.
| 5. What are the tax implications of goodwill in partnership accounts? | |
Ans. The tax treatment of goodwill in partnership accounts varies depending on the jurisdiction and tax laws. In some countries, goodwill may be subject to capital gains tax when sold or transferred. However, in certain situations, tax laws may allow for the amortization of goodwill over a certain period, reducing the tax burden. It is advisable to consult with a tax professional or accountant to understand the specific tax implications of goodwill in a partnership.
Related Exams
About this Document
|
1.7K Views |
|
4.72/5 Rating |
|
Nov 15, 2024 Last updated |
Document Description: PPT : Treatment of goodwill in Partnership Accounts - 2 for Commerce 2024 is part of Accountancy Class 12 preparation.
The notes and questions for PPT : Treatment of goodwill in Partnership Accounts - 2 have been prepared according to the Commerce exam syllabus. Information about PPT : Treatment of goodwill in Partnership Accounts - 2 covers topics
like and PPT : Treatment of goodwill in Partnership Accounts - 2 Example, for Commerce 2024 Exam. Find important definitions, questions, notes, meanings, examples, exercises and tests below for PPT : Treatment of goodwill in Partnership Accounts - 2.
Introduction of PPT : Treatment of goodwill in Partnership Accounts - 2 in English is available as part of our Accountancy Class 12
for Commerce & PPT : Treatment of goodwill in Partnership Accounts - 2 in Hindi for Accountancy Class 12 course.
Download more important topics related with notes, lectures and mock test series for Commerce
Exam by signing up for free. Commerce: PPT : Treatment of goodwill in Partnership Accounts - 2 | Accountancy Class 12 - Commerce
Description
Full syllabus notes, lecture & questions for PPT : Treatment of goodwill in Partnership Accounts - 2 | Accountancy Class 12 - Commerce - Commerce | Plus excerises question with solution to help you revise complete syllabus for Accountancy Class 12 | Best notes, free PDF download
Information about PPT : Treatment of goodwill in Partnership Accounts - 2
In this doc you can find the meaning of PPT : Treatment of goodwill in Partnership Accounts - 2 defined & explained in the simplest way possible. Besides explaining types of
PPT : Treatment of goodwill in Partnership Accounts - 2 theory, EduRev gives you an ample number of questions to practice PPT : Treatment of goodwill in Partnership Accounts - 2 tests, examples and also practice Commerce
tests
|
Explore Courses for Commerce exam
|
|
Signup for Free!
Signup to see your scores go up within 7 days! Learn & Practice with 1000+ FREE Notes, Videos & Tests.
Related Searches
study material
,PPT : Treatment of goodwill in Partnership Accounts - 2 | Accountancy Class 12 - Commerce
,shortcuts and tricks
,Viva Questions
,Previous Year Questions with Solutions
,Exam
,Sample Paper
,ppt
,past year papers
,PPT : Treatment of goodwill in Partnership Accounts - 2 | Accountancy Class 12 - Commerce
,practice quizzes
,video lectures
,Free
,Semester Notes
,MCQs
,Important questions
,Summary
,mock tests for examination
,Objective type Questions
,Extra Questions
,PPT : Treatment of goodwill in Partnership Accounts - 2 | Accountancy Class 12 - Commerce
;
Additional Information about PPT : Treatment of goodwill in Partnership Accounts - 2 for Commerce Preparation
PPT : Treatment of goodwill in Partnership Accounts - 2 Free PDF Download
The PPT : Treatment of goodwill in Partnership Accounts - 2 is an invaluable resource that delves deep into the core of the Commerce exam.
These study notes are curated by experts and cover all the essential topics and concepts, making your preparation more efficient and effective.
With the help of these notes, you can grasp complex subjects quickly, revise important points easily,
and reinforce your understanding of key concepts. The study notes are presented in a concise and easy-to-understand manner,
allowing you to optimize your learning process. Whether you're looking for best-recommended books, sample papers, study material,
or toppers' notes, this PDF has got you covered. Download the PPT : Treatment of goodwill in Partnership Accounts - 2 now and kickstart your journey towards success in the Commerce exam.
Importance of PPT : Treatment of goodwill in Partnership Accounts - 2
The importance of PPT : Treatment of goodwill in Partnership Accounts - 2 cannot be overstated, especially for Commerce aspirants.
This document holds the key to success in the Commerce exam.
It offers a detailed understanding of the concept, providing invaluable insights into the topic.
By knowing the concepts well in advance, students can plan their preparation effectively.
Utilize this indispensable guide for a well-rounded preparation and achieve your desired results.
PPT : Treatment of goodwill in Partnership Accounts - 2 Notes
PPT : Treatment of goodwill in Partnership Accounts - 2 Notes offer in-depth insights into the specific topic to help you master it with ease.
This comprehensive document covers all aspects related to PPT : Treatment of goodwill in Partnership Accounts - 2.
It includes detailed information about the exam syllabus, recommended books, and study materials for a well-rounded preparation.
Practice papers and question papers enable you to assess your progress effectively.
Additionally, the paper analysis provides valuable tips for tackling the exam strategically.
Access to Toppers' notes gives you an edge in understanding complex concepts.
Whether you're a beginner or aiming for advanced proficiency, PPT : Treatment of goodwill in Partnership Accounts - 2 Notes on EduRev are your ultimate resource for success.
PPT : Treatment of goodwill in Partnership Accounts - 2 Commerce Questions
The "PPT : Treatment of goodwill in Partnership Accounts - 2 Commerce Questions" guide is a valuable resource for all aspiring students preparing for the
Commerce exam. It focuses on providing a wide range of practice questions to help students gauge
their understanding of the exam topics. These questions cover the entire syllabus, ensuring comprehensive preparation.
The guide includes previous years' question papers for students to familiarize themselves with the exam's format and difficulty level.
Additionally, it offers subject-specific question banks, allowing students to focus on weak areas and improve their performance.
Study PPT : Treatment of goodwill in Partnership Accounts - 2 on the App
Students of Commerce can study PPT : Treatment of goodwill in Partnership Accounts - 2 alongwith tests & analysis from the EduRev app,
which will help them while preparing for their exam. Apart from the PPT : Treatment of goodwill in Partnership Accounts - 2,
students can also utilize the EduRev App for other study materials such as previous year question papers, syllabus, important questions, etc.
The EduRev App will make your learning easier as you can access it from anywhere you want.
The content of PPT : Treatment of goodwill in Partnership Accounts - 2 is prepared as per the latest Commerce syllabus.
|
© EduRev
|
Education Revolution
|
Follow Us
|
Signup to see your scores
go up within 7 days!
Access 1000+ FREE Docs, Videos and Tests
Takes less than 10 seconds to signup