The goodwill procedure was used to record the investment of a new partner in the XYZ Partnership,

Question:

The procedure was used to record the investment of a new partner in the XYZ but immediately thereafter, the entire business was sold for an amount equal to the recorded capital of the Under what conditions would the amounts received in final of the have been the same as if the bonus procedure had been used?

Goodwill
Goodwill is an important concept and terminology in accounting which means good reputation. The word goodwill is used at various places in accounting but it is recognized only at the time of a business combination. There are generally two types of... Liquidation
Liquidation in finance and economics is the process of bringing a business to an end and distributing its assets to claimants. It is an event that usually occurs when a company is insolvent, meaning it cannot pay its obligations when they are due.... Partnership
A legal form of business operation between two or more individuals who share management and profits. A Written agreement between two or more individuals who join as partners to form and carry on a for-profit business. Among other things, it states...