How does the factor ‘Location’ affect the goodwill of a firm? Post category:Accountancy Reading time:1 mins read SOLUTION Better location will attract more customers resulting in increase in sales and profits which in turn will result in increase in the value of goodwill. Please Share This Share this content Opens in a new window X Opens in a new window Facebook Opens in a new window Pinterest Opens in a new window LinkedIn Opens in a new window Viber Opens in a new window VK Opens in a new window Reddit Opens in a new window Tumblr Opens in a new window Viadeo Opens in a new window WhatsApp Read more articles Previous PostWhy is ‘Goodwill’ considered an ‘Intangible Asset’ but not a ‘Fictitious Asset’? (ISC 2020) Next PostHow does the factor ‘Efficiency of Management’ affect the goodwill of firm? You Might Also Like A, B and C are the partners sharing profits and losses in the ratio of 5: 3: 2. C retired and his capital balance after adjustments regarding Reserves, Accumulated profits / losses and gain / loss on revaluation was Rs. 2,50,000. C share was paid Rs. 3,00,000 in full of settlement. Afterwards D was admitted D. for 1 / 5th. (C.B.S.E. Sample Paper, 2017) September 27, 2022 On the admission of Rao, goodwill of Murty and Shah is valued at Rs. 30,000. Rao is to get 1/4th share of profits. Previously Murty and Shah shared profits in the ratio of 3 : 2. Rao is unable to bring amount of goodwill. Give Journal entries in the books of Murty and Shah when: (a) there is no Goodwill Account and (b) Goodwill appears in the books at Rs. 10,000. August 1, 2022 How will the Realisation Account closed, if it discloses a loss? September 27, 2022 Leave a Reply Cancel replyYou must be logged in to post a comment.
A, B and C are the partners sharing profits and losses in the ratio of 5: 3: 2. C retired and his capital balance after adjustments regarding Reserves, Accumulated profits / losses and gain / loss on revaluation was Rs. 2,50,000. C share was paid Rs. 3,00,000 in full of settlement. Afterwards D was admitted D. for 1 / 5th. (C.B.S.E. Sample Paper, 2017) September 27, 2022
On the admission of Rao, goodwill of Murty and Shah is valued at Rs. 30,000. Rao is to get 1/4th share of profits. Previously Murty and Shah shared profits in the ratio of 3 : 2. Rao is unable to bring amount of goodwill. Give Journal entries in the books of Murty and Shah when: (a) there is no Goodwill Account and (b) Goodwill appears in the books at Rs. 10,000. August 1, 2022