DETERMINATION OF GOODWILL AND BONUS ON ADMISSION OF A PARTNER.
The article focuses on the determination of goodwill and bonus on admission of partner. It focuses on an understanding of the logic involved in various methods of admitting partners. Partnership change problems (withdrawal, admission, substitution, and dissolution) can be among the most challenging, thought-provoking and interesting experiences in the introductory accounting course. In fact, the values to be derived from thinking through such problems greatly outweigh the transient value of getting the correct solution to a particular problem. The article emphasizes that the more that problems such as partnership capital changes are presented by means of routine mathematical formulae, the more harm is done to the thinking process. The logic underlying solution to admission problem should be stressed. For a number of years the following simple outline form has been used in presenting partnership changes. There are only so many possibilities inherent in a situation; once a person understands the problem at hand he has won the battle.
- DOI
- 10.2308/tar-7134890
- Volume
- 39 (3)
- Pages
- 754-756
- Language
- en
- Export
- BibTeX
- Sources
- openalex crossref