Madhu and Neha were partners in a firm sharing profits and losses in the ratio of...
Fantastic news! We've Found the answer you've been seeking!
Question:
Transcribed Image Text:
Madhu and Neha were partners in a firm sharing profits and losses in the ratio of 3 : 5. Their fixed capitals were Rs.4, 00, 000 and Rs.6, 00, 000 respectively. On 1/1/2016, Tina 1 th was admitted as a new partner for share in the profits. Tina acquired her share of 4 profit from Neha. Tina brought Rs.4, 00, 000 as her capital which was to be kept fixed like the capitals of Madhu and Neha. Calculate the goodwill of the firm on Tina's admission and the new profit sharing ratio of Madhu, Neha and Tina. Also, pass necessary journal entry for the treatment of goodwill on Tina's admisson considering that Tina did not bring her share of goodwill premium in cash Madhu and Neha were partners in a firm sharing profits and losses in the ratio of 3 : 5. Their fixed capitals were Rs.4, 00, 000 and Rs.6, 00, 000 respectively. On 1/1/2016, Tina 1 th was admitted as a new partner for share in the profits. Tina acquired her share of 4 profit from Neha. Tina brought Rs.4, 00, 000 as her capital which was to be kept fixed like the capitals of Madhu and Neha. Calculate the goodwill of the firm on Tina's admission and the new profit sharing ratio of Madhu, Neha and Tina. Also, pass necessary journal entry for the treatment of goodwill on Tina's admisson considering that Tina did not bring her share of goodwill premium in cash
Expert Answer:
Answer rating: 100% (QA)
Working Notes Calculation of Tinas Share of Goodwill Hidden T... View the full answer
Related Book For
South Western Federal Taxation 2016 Corporations Partnerships Estates and Trusts
ISBN: 9781305399884
39th edition
Authors: James Boyd, William Hoffman, Raabe, David Maloney, Young
Posted Date:
Students also viewed these accounting questions
-
1. John and Gus Rigas are associated with: a. none of these b. Bernie Madoff c. international postal reply coupons d. Adelphia Communications Corporation(answer) 2. The chapter discussed four schools...
-
In no more than 525 words, use your company's 10k from Week 1 to report on the following: Working capital, quick ratio, current cash debt coverage ratio, inventory turnover, days in inventory,...
-
In no more than three PowerPoint slides, list some general guidelines that a taxpayer can use to determine whether it has an obligation to file an income tax return with a particular state. (Include...
-
In a two-player, one-shot simultaneous-move game each player can choose strategy A or strategy B. If both players choose strategy A, each earns a payoff of $500. If both players choose strategy B,...
-
Why does the user of an income statement need to know the time period that it covers?
-
How do we account for operating activities? This chapter considered the estimation and reporting of revenues and expenses. A companys income statement is affected by estimates of sales returns,...
-
1. Working in small groups, complete the Pay Raise Worksheet. 2. After the class reconvenes, group spokespersons present group findings. Pay Raise Worksheet April Knepper is the new supervisor of an...
-
Dudley Calendars imprints calendars with college names. The company has fixed expenses of $ 1,125,000 each month plus variable expenses of $ 4.50 per carton of calendars. Of the variable expense, 74%...
-
The following scenario will be used for the next three questions. Thorin Corp. began operations in 2017. It is a merchandiser of a single item - Product Q and uses the Periodic Inventory method. The...
-
Bright Sparks Electrical - Bank Register Report: Now that you have completed the journals for the month, you need to prepare the Bank Register Report in the template below. Not all general journals...
-
In 1999, NASA lost the Mars Climate Orbiter, a 338 kg robotic space probe (with a cost of $327.6 million dollars) due to a failed translation of British units into metric units in the mission...
-
Suppose Britain experiences unusually strong GDP growth and a rapid increase in its Consumer Price Index. Answer the following questions about what would most likely result : #15 Suppose Britain...
-
prepare a relevant cost schedule showing the benefits of keeping the old lathe or buying the new one. Information about the old lathe: Cost $57,000 Estimated useful life 8 years Estimated residual...
-
Discuss the assumption that regular eye check-up, regular dental check-up and regular blood pleasure check-up are merit goods.?
-
What is GOD like, Not whether GOD is a deity, but how many and which one(s). How many, and which one(s). How do you know GOD? Does God care? And is God good? According to Kelly M. Kapic
-
Visa 1. Explain how partnership changes could impact progress in blockchain-related innovation for Visa. 2. How should Visa approach blockchain implementation? Should it focus on developing its...
-
9. For the shown system, find the natural frequency if m= 10 kg, k- 1000 N/m, kz-1800 N/m, and 0-30 A. 17.3 rad/sec C., 18.7 rad/sec E. 20.1 rad/sec B. 16.7 rad/sec D. 15.8 rad/sec A. 0.058 kg.m C....
-
Suppose that a flow network G = (V, E) violates the assumption that the network contains a path s t for all vertices V. Let u be a vertex for which there is no path s u t. Show that there must...
-
Plane, Inc., a U.S. corporation, earned $600,000 in total taxable income for the current year. This total includes $750,000 in U.S.-source income, $50,000 in foreign-source income in the passive...
-
In terms of tax ramifications, comment on what is accomplished in the following disclaimer situations occurring in 2015. a. Lester dies intestate and is survived by a daughter, Nora, and a grandson,...
-
The board of directors of Orange Corporation, a calendar year taxpayer, is holding its year-end meeting on December 30, 2015. One topic on the boards agenda is the approval of a $25,000 gift to a...
-
Please reflect on and explain the role and usefulness of the concept of SD in relation to the protection of the environment.
-
Has the concept of SD achieved the balance between all three pillars: environmental protection; economic development; and social issues?
-
What, if any, is the normative content of the concept of SD?
Study smarter with the SolutionInn App