(Treatment of goodwill) A, B and C were partners sharing profit & in the ratio of 4:3:3. B dies and the goodwill of the firm is valued at $25,000. Assuming that A and C will share the future profits in the ratio of 3:2. Pass the journal entries in each of the following alternative cases: Case a: When no goodwill account appears in the books. Case b: When goodwill account appears in the books at $10,000.

(Treatment of goodwill) A, B and C were partners sharing profit & in the ratio of 4:3:3. B dies and the goodwill of the firm is valued at $25,000. Assuming that A and C will share the future profits in the ratio of 3:2. Pass the journal entries in each of the following alternative cases: Case a: When no goodwill account appears in the books. Case b: When goodwill account appears in the books at $10,000.

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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