Given the following information for questions 1 – 4:Mrebe and Johannes are in a partnership trading as KwaQongo Farmers. The partners are sharing profits and losses equally. On 30 July 20.1 the following information was extracted from the accounting records of the partnership:Which one of the following alternatives represents the correct amount of goodwill in the accounting records of KwaQongo Farmers after the admission of Mqithwa? A.92 400B.109 400C.83 100D.90 800 EXTRACT OF GIVEN INFORMATION FOR KWAQONGO FARMERSRCapital - Mrebe..Capital - Johannes.Current account - Mrebe (Cr)...Current account- Johannes (Dr).105 600.....93 60038 400..........24 000Mrebe and Johannes decided to admit Mqithwa from 1 August 20.1.Mqithwa will contribute the following to acquire a fifth of the net asset shareof the partnership1. Cash...180002. Farming equipment worth...49200Mrebe and Johannes agreed to relinquish 20% of their share in profits orlosses to Mqithwa in the ratio of 3:1 respectivelyAll other assets were revalued before admitting Mqithwa to the partnership.A valuation loss was correctly calculated at...37 200

Option (a) is the correct answer

Answered: Mrebe and Johannes are in a partnership…

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

See similar textbooks

Related questions

Question

Given the following information for questions 1 – 4:

Mrebe and Johannes are in a partnership trading as KwaQongo Farmers. The partners are sharing profits and losses equally. On 30 July 20.1 the following information was extracted from the accounting records of the partnership:

Which one of the following alternatives represents the correct amount of goodwill in the accounting records of KwaQongo Farmers after the admission of Mqithwa?

A.
92 400
B.
109 400
C.
83 100
D.
90 800

EXTRACT OF GIVEN INFORMATION FOR KWAQONGO FARMERS
R
Capital - Mrebe..
Capital - Johannes.
Current account - Mrebe (Cr)...
Current account- Johannes (Dr).
105 600
.....
93 600
38 400
..........
24 000
Mrebe and Johannes decided to admit Mqithwa from 1 August 20.1.
Mqithwa will contribute the following to acquire a fifth of the net asset share
of the partnership
1. Cash...
18000
2. Farming equipment worth...
49200
Mrebe and Johannes agreed to relinquish 20% of their share in profits or
losses to Mqithwa in the ratio of 3:1 respectively
All other assets were revalued before admitting Mqithwa to the partnership.
A valuation loss was correctly calculated at...
37 200

Definition Definition Arrangement between two or more people whereby they agree to manage business operations and share its profits and losses in an agreed ratio. The agreement 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, and drawings of a partner.

Expert Solution

Step by step

Solved in 3 steps

SEE SOLUTION Check out a sample Q&A here

Knowledge Booster

Learn more about

Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.

Similar questions