Practicing Success
Practicing Success
CUET Preparation Today
| According to AS-26, which goodwill is not accounted in the books of account of partnership firm? |
Purchased goodwill Self-Generated goodwill Both of these None of these |
| Self-Generated goodwill |
| 1)Purchased: Purchased goodwill is the difference between the value paid for an enterprise as a going concern and the sum of its assets less the sum of its liabilities, each item of which has been separately identified and valued. 2)Inherent: It is the value of the business in excess of the fair value of its separable net assets. It is referred to as internally generated goodwill, and it arises over a period of time due to the good reputation of a business. It can also be called as self-generated or non-purchased goodwill. In accounting, internally generated goodwill is not allowed. |
