CUET Preparation Today
In line with what is prescribed by the Accounting Standard, goodwill appearing in the balance sheet is written off at the time of.......... |
Firm's dissolution Revaluation of assets and liabilities Firm's reconstitution Preparation of Realisation A/c |
Firm's reconstitution |
The correct answer is option 3- Firm's reconstitution. Goodwill appearing in the balance sheet is written off at the time of Firm's reconstitution.
Purchased goodwill may be accounted for in the books and shown as an asset, where it is accounted for in the books and shown as assets, it should be written off as early as possible, but where it is to be written- off in more than one accounting year, it should be written off in a period not exceeding 10 years. In line with what is prescribed by the Accounting Standard, goodwill appearing in the balance sheet in written off at the time of firm's reconstitution. |
