A. Smith, a partner in an accounting firm, decided to withdraw from the partnership, Smith's share of the partnership profits and losses was 20%. Upon withdrawing from the partnership he was paid P88,800 in final settlement for his interest. The total of the partners' capital accounts before recognition of partnership goodwill prior to Smith's withdrawal was P252,000. After his withdrawal the remaining partners' capital accounts, excluding their share of goodwill, totalled P192,000. The total gooadwill of the firm was: O A. 144000 O B. 168000 O C. 192000 D. 300000

A. Smith, a partner in an accounting firm, decided to withdraw from the partnership, Smith's share of the partnership profits and losses was 20%. Upon withdrawing from the partnership he was paid P88,800 in final settlement for his interest. The total of the partners' capital accounts before recognition of partnership goodwill prior to Smith's withdrawal was P252,000. After his withdrawal the remaining partners' capital accounts, excluding their share of goodwill, totalled P192,000. The total gooadwill of the firm was: O A. 144000 O B. 168000 O C. 192000 D. 300000

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Question

A. Smith, a partner in an accounting firm, decided to withdraw from the
partnership, Smith's share of the partnership profits and losses was 20%.
Upon withdrawing from the partnership he was paid P88,800 in final
settlement for his interest. The total of the partners' capital accounts before
recognition of partnership goodwill prior to Smith's withdrawal was
P252,000. After his withdrawal the remaining partners' capital accounts,
excluding their share of goodwill, totalled P192,000. The total goodwill of
the firm was:
A. 144000
O B. 168000
O C. 192000
D. 300000

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