A, B & C are partners sharing profits and loss in the ratio 3: 2: 1....
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A, B & C are partners sharing profits and loss in the ratio 3: 2: 1. They decide to change their profit sharing ratio to 2:2: 1. To gave effect to this new profit sharing ratio, they decide to value the goodwill at Rs. 30,000. Pass the necessary journal entry if Goodwill not appearing in the old balance sheet and should not appear in the new balance sheet. B's Capital A/c C's Capital A/c To A's Capital A/c Goodwill A/c To A's Capital A/c To B's Capital A/c To C's Capital A/c A's Capital A/c B's Capital A/c C's Capital A/c To Goodwill A/c A's Capital A/c To B's Capital A/c To C's Capital A/c Dr. Dr. Dr. Dr. Dr. Dr. 2,000 1,000 3,000 30,000 Dr. 12,000 12,000 6,000 12,000 12, 00030, 000 6,000 3,000 2,000 1,000 A, B & C are partners sharing profits and loss in the ratio 3: 2: 1. They decide to change their profit sharing ratio to 2:2: 1. To gave effect to this new profit sharing ratio, they decide to value the goodwill at Rs. 30,000. Pass the necessary journal entry if Goodwill not appearing in the old balance sheet and should not appear in the new balance sheet. B's Capital A/c C's Capital A/c To A's Capital A/c Goodwill A/c To A's Capital A/c To B's Capital A/c To C's Capital A/c A's Capital A/c B's Capital A/c C's Capital A/c To Goodwill A/c A's Capital A/c To B's Capital A/c To C's Capital A/c Dr. Dr. Dr. Dr. Dr. Dr. 2,000 1,000 3,000 30,000 Dr. 12,000 12,000 6,000 12,000 12, 00030, 000 6,000 3,000 2,000 1,000
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Sacrificing Ratio Old ratio New ratio A 36 25 15 1230 33... View the full answer
Related Book For
Cost Management Measuring Monitoring and Motivating Performance
ISBN: 978-0470769423
2nd Canadian edition
Authors: Leslie G. Eldenburg, Susan Wolcott, Liang-Hsuan Chen, Gail Cook
Posted Date:
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