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26. Different Cases of Goodwill) A and B shared profits in the proportion of 3 and 2 had capitals of 20,000 and 15.000 respectively. They agree to admit C into partnership as from 1st January, 2015 on the follwing terms in return for a third share in the future profits: (a) That C should bring in 20,000 as capital: (b) That as C is unable to bring his share of goodwill in cash the goodwill of the firm be valued at 15,000. Set out the journal entries required, the capital accounts of the partners. State the future profit sharing proportion of the partners. |
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