(Treatment of goodwill) A and B are partners sharing profits and losses in the ratio of 3: 2. On 1.4.2014 C was admitted as a partner paying $30,000 as capital and the necessary amount of goodwill which was valued at $54,000 for the firm. His share of profits is 1/6 which he acquires equally from A and B. The profit for the year ended 31st March 2015 was $36,000. Journalise the above transactions.

(Treatment of goodwill) A and B are partners sharing profits and losses in the ratio of 3: 2. On 1.4.2014 C was admitted as a partner paying $30,000 as capital and the necessary amount of goodwill which was valued at $54,000 for the firm. His share of profits is 1/6 which he acquires equally from A and B. The profit for the year ended 31st March 2015 was $36,000. Journalise the above transactions.

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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