No products in the cart.

What do you mean by Hidden …

CBSE, JEE, NEET, CUET

CBSE, JEE, NEET, CUET

Question Bank, Mock Tests, Exam Papers

NCERT Solutions, Sample Papers, Notes, Videos

What do you mean by Hidden goodwill?
  • 3 answers

Himanshu Jha 4 years, 7 months ago

Image result for cbse 2020 exam date

Himanshu Jha 4 years, 7 months ago

Media posted by CBSE HQ #cbse joins the nation to celebrate 73rd

Gaurav Seth 4 years, 7 months ago

Hidden Goodwill means the value of goodwill that is not specified at the time of admission of a partner. If the new partner requires to bring the share of goodwill, then, in this case, we have to calculate the value of the firm’s goodwill.

Sometimes the value of goodwill is not given at the time of admission of a new partner. in that case the goodwill is calculated with the help of total capital/net worth of the firm and profit sharing ratio.

Hidden goodwill

When the value of goodwill is not given in the question, it has to be calculated on the basis of total capital/net worth of the firm and profit sharing ratio.
 


 

Illustration 8

X and Y are partners with capitals of ₹ 10,000 each. They admit Z as a partner for 1/4th share in the profits of the firm. Z brings ₹ 16,000 as his share of capital.
 

The Profit and Loss account showed a credit balance of ₹ 8,000 as on the date of admission of Z. Give the necessary journal entry to record goodwill.
 



Working Note :-

<div style="text-align:start; -webkit-text-stroke-width:0px"> </div>

 

Therefore, Hidden Goodwill =

http://mycbseguide.com/examin8/

Related Questions

Rac ds1 solution
  • 0 answers
Rspl 1 accounts solutions
  • 0 answers

myCBSEguide App

myCBSEguide

Trusted by 1 Crore+ Students

Test Generator

Test Generator

Create papers online. It's FREE.

CUET Mock Tests

CUET Mock Tests

75,000+ questions to practice only on myCBSEguide app

Download myCBSEguide App