Goodwill can be created in the books of a partnership firm when

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Accounts - Principles of Accounts JAMB 2017

Goodwill can be created in the books of a partnership firm when

  • the partnership experiences super profit checkmark
  • a new member is admitted
  • the business is being expanded
  • the business suffers high loss

The correct answer is: A

Explanation

The partnership experiences super profit: super profit is the profit that is generated by intangible asset or the profit that is attributed by the tangible asset when such profit is capitalized we get intangible asset or goodwill
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