The partners are to change their profit ratios as shown: They decide to bring in a goodwill

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The partners are to change their profit ratios as shown:

They decide to bring in a goodwill amount of £72,000 on the change. The last balance sheet before any element of goodwill has been introduced was:

Show the balance sheets on 1 October 20X2 after necessary adjustments have been made if:

(a) Goodwill account was opened.

(b) Goodwill account was not opened.

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Frank Woods Business Accounting Volume 1

ISBN: 9780273681496

10th Edition

Authors: Frank Wood, Alan Sangster

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Question Posted: Aug 20, 2023 02:00 AM

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The partners are to change their profit ratios as shown: They decide to bring in a goodwill

Question:

Mack Burns Flint Tonks Old ratio 1 4 23 New ratio 2 3 4 1

Step by Step Answer:

a Goodwill account was opened In this case the partners are bringing in a goodwill amount of 72000 G...View the full answer

Frank Woods Business Accounting Volume 1

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