Case AB A C D Partner's Capital X Y Z Goodwill in business books Not available 50,000 70,000 30,000 OMR 120,000 90,000 82,000 Actual value of goodwill 60,000 75,000 45,000 30,000 X,Y and Z share profits and losses at 1/4, 1/4 and 2/4 respectively. Partner X decide to leave the partnership. You are required to show: A) Journal entries necessaries if goodwill account to be opened for all cases. B) Capital accounts for all cases
Partnership Accounting
A partnership is a kind of arrangement between two or more people whereby they agree to manage the business operations and share its profits and losses in an agreed ratio between them. The agreement that is drafted and signed by the partners of the firm is termed as partnership deed and contains various important clauses agreed between the partners such as profit/loss sharing, interest on capital, remuneration allocation of each partner, drawings, admission of a new partner, etc.
Partner Admission and Withdrawal
A partnership is a kind of arrangement between two or more people whereby they agree to manage the business operations and share its profits and losses in an agreed ratio between them. The agreement that is drafted and signed by the partners of the firm is termed as a partnership deed and contains various important clauses agreed between the partners such as profit/loss sharing, interest on capital, remuneration allocation of each partner, drawings of a partner, etc.
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