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What is the Nature of Premium …

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What is the Nature of Premium for Goodwill?

Posted by Shradha Malpani 4 years, 2 months ago

CBSE > Class 12 > Accountancy

1 answers

Yogita Ingle 4 years, 2 months ago

Goodwill is an intangible asset that arises when one company purchases another for a premium value. The value of a company’s brand name, solid customer base, good customer relations, good employee relations ,and any patents or proprietary technology represent goodwill.
The nature of Premium for Goodwill A/c is Liability. It represents the liability of the firm towards the sacrificing partners.

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