0
Why is goodwill account debited when company issues shares to promoters?
Wiki User
∙ 11y ago
Promoters are the pioneer investors of a company. It can be said that due to the promoters the company has come this far. So, promoters do deserve some credibility and they get goodwill. Goodwill is debited and the promoters capital is credited. Thus, the promoters don't bring in cash for their increased share. But if, the goodwill has already been created before and the promoters have got their share, promoters need to bring cash for additional share.
Wiki User
∙ 11y ago
Add your answer:
Earn +20 pts
What account is debited when a company returns merchandise to a vendor on credit?
credit
When a company provides a service and allows the customer to pay in 30 days which account is to be debited?
Accounts Receivable
Is debited a deduction?
yes debited is a deduction from the account as it only taked whats int your account out if you have enough
When the seller is paid the customer's account is.credited or debited?
debited
When December rent is paid in November which account is debited?
Prepaid Rent is debited.
Goodwill journal entries?
Goodwill is recorded in the accounting records when a company purchases another company for a price exceeding the fair value of its identifiable net assets. The journal entry to record goodwill involves debiting the Goodwill account and crediting the corresponding payment accounts like Cash or Accounts Payable. Each year, companies must perform impairment tests on goodwill and adjust the carrying value if necessary through a journal entry that debits the Goodwill Impairment Loss and credits the Goodwill account.
What account is debited when a company returns merchandise to a vendor on credit?
credit
What account gets debited when a company renders services?
The customer's, once they pay the invoice for the services rendered.
When a company provides a service and allows the customer to pay in 30 days which account is to be debited?
Accounts Receivable
Is debited a deduction?
yes debited is a deduction from the account as it only taked whats int your account out if you have enough
When the seller is paid the customer's account is.credited or debited?
debited
When December rent is paid in November which account is debited?
Prepaid Rent is debited.
When December rent is paid in November to which account is it debited?
Prepaid Rent is debited.
What is debited?
It is something that is entered into an account as a debt
When a proprietor uses goods for own use which account is debited?
Considering that own use is for the company, the account to be debited will follow the nature of such good. For instance: if the company is a soap manufacturer and it uses some of that soap to clean its own plant, the account to be debited will be cleaning expenses; if the company is an office furniture manufacturer and it uses some desks that it produced for its own office the debited account will be fixed assets. Now, if the beneficiary is the proprietor as an individual - such as he/she took some soap or a desk to use at his/her home - the account to be debited will be an asset (e.g. acounts receivable from quotaholders) in case the individual will refund or pay for such goods or a distribution of results account if he/she will not refund the company.Once you classified your question under credit/debit cards title it is presumable the case of use of a corporate card to pay for personal stuff. In this case the most adequate treatment would be to debit a receivable from the quotaholder which could be offset by results distribution. This is preferrable than simply debit distribution directly because it keeps a clearer tracking of company's funds tracking.
How do you find your account new world life insurance company?
I have had the account closed that the premiums were debited from & have not received anything from Farmers in regards to this policy when I inquired prior to the credit union closing.
Can your bank account be debited without you being told?
NO.
