Practicing Success
On dissolution of partnership, goodwill account is transferred to: |
The debit side of Realisation Account The credit side of Realisation Account The credit side of Partner's Capital/Current Account The debit side of Partner's Capital/Current Account |
The debit side of Realisation Account |
Goodwill does not have any special treatment in dissolution. It should be treated like any other asset. If it already appears in books, it will be transferred, like all other assets, to the debit side of Realisation Account. |