Sale of Goodwill

JodieR

I've prepared a set of accounts for a partnership up until it was incorporated - the accountants who are going to be preparing the Ltd Co accounts in future have seen the accounts and asked that I introduce an entry for the sale of goodwill. I've entered it into the P&L account and I'm guessing that in the balance sheet I should be showing a debtor of the same amount - is that right and if so do you know what I should call the account?

Jodie

peugeot

You could show it as either sundry debtor or "Unpaid proceeds on goodwill". Partnership accounts aren't subject to statutory format so it should be ok using either of these terminology.

Steve

JodieR

Thanks