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If valued goodwill is not to show in the books of account (as per AS 26) then how one firm can develop goodwill?

Posted by Hameer R 4 years, 9 months ago

CBSE > Class 12 > Accountancy

2 answers

Sia ? 4 years, 9 months ago

According to AS-26, Goodwill should be recorded in the books only when some consideration in money or money’s worth has been paid for it. If no consideration is paid for it than no Goodwill Account is raised.

2Thank You

Hameer R 4 years, 9 months ago

Thanks But valued goodwill we have to written off at the same time we can't show that raised goodwill in the new balance sheet .

0Thank You

ANSWER

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CBSE > Class 12 > Accountancy