What is meant by “Hidden Goodwill”? (C.B.S.E. 2017, Comptt.) Post category:Accountancy Reading time:1 mins read SOLUTION When the value of goodwill of the firm is not given but has to be inferred on the basis of net worth of the firm, it is called hidden 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 PostUnder what circumstances premium for goodwill paid by the incoming partner would never be recorded in the books of account? Next PostWhy should a new partner contribute towards goodwill on his admission? (C.B.S.E. 2017, Comptt.) You Might Also Like State whether cash deposited in bank will result in inflow, outflow or no flow of cash? October 6, 2022 From the following information related to Naveen Ltd., calculate (a) Return on Investment and (b) Total Assets to Debt Ratio: Information: Fixed Assets Rs. 75,00,000; Current Assets Rs. 40,00,000; Current Liabilities Rs. 27,00,000; 12% Debentures Rs. 80,00,000 and Net Profit before Interest, Tax and Dividend Rs. 14,50,000. August 18, 2022 Vimal and Nirmal are partners in a firm sharing profits and losses in the ratio of 3: 2. A new partner Kailash is admitted. Vimal gives 1/5th of his share and Nirmal gives 2/5th of his share in favour of Kailash. For the purpose of Kailash’s admission, goodwill of the firm is valued at 75,000 and Kailash brings his share of goodwill in cash which is retained in the business. Journalise the above transactions. November 3, 2022 Leave a Reply Cancel replyYou must be logged in to post a comment.
State whether cash deposited in bank will result in inflow, outflow or no flow of cash? October 6, 2022
From the following information related to Naveen Ltd., calculate (a) Return on Investment and (b) Total Assets to Debt Ratio: Information: Fixed Assets Rs. 75,00,000; Current Assets Rs. 40,00,000; Current Liabilities Rs. 27,00,000; 12% Debentures Rs. 80,00,000 and Net Profit before Interest, Tax and Dividend Rs. 14,50,000. August 18, 2022
Vimal and Nirmal are partners in a firm sharing profits and losses in the ratio of 3: 2. A new partner Kailash is admitted. Vimal gives 1/5th of his share and Nirmal gives 2/5th of his share in favour of Kailash. For the purpose of Kailash’s admission, goodwill of the firm is valued at 75,000 and Kailash brings his share of goodwill in cash which is retained in the business. Journalise the above transactions. November 3, 2022