Practicing Success
Assertion(A): Goodwill, if appearing in the Balance Sheet, should be written off . Reason(R): AS-26 prescribe that self generated goodwill is not to be recognised in the books of accounts. Therefore, if Goodwill Account is raised, it is immediately written off. Choose the correct option out of following: |
A is correct but R is incorrect A is incorrect but R is correct. Both A and R correct but R is not the correct explanation of A Both A and R correct but R is the correct explanation of A. |
Both A and R correct but R is the correct explanation of A. |
Both A and R correct but R is the correct explanation of A. Existing goodwill is written off to partners in their old ratio. |