Mr Ahmed and Mr Mohammed are partners sharing profits and losses in the ratio of 7:3. Mr Sulaiman is admitted as a new partner for 1/7th share. Mr Sulaiman brings OMR 80,000 as his capital but he is not able to bring his share of Goodwill in cash. Total Goodwill of the firm is RO. 70,000. Pass necessary journal entries: (a)No Goodwill already appears (b)Goodwill already appears at OMR 36,000
Mr Ahmed and Mr Mohammed are partners sharing profits and losses in the ratio of 7:3. Mr Sulaiman is admitted as a new partner for 1/7th share. Mr Sulaiman brings OMR 80,000 as his capital but he is not able to bring his share of Goodwill in cash. Total Goodwill of the firm is RO. 70,000. Pass necessary journal entries: (a)No Goodwill already appears (b)Goodwill already appears at OMR 36,000
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Mr Ahmed and Mr Mohammed are partners sharing profits and losses in the ratio of 7:3. Mr Sulaiman is admitted as a new partner for 1/7th share. Mr Sulaiman brings OMR 80,000 as his capital but he is not able to bring his share of Goodwill in cash. Total Goodwill of the firm is RO. 70,000. Pass necessary journal entries:
(a)No Goodwill already appears
(b)Goodwill already appears at OMR 36,000
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