A and B are partners and share profits and losses in the ratio $2$:$3$ respectively.C is admitted as a partner and it is agreed that he should pay R $60000$ for his one$-$third interest in the partnership and that goodwill will be shown in the books of the partnership.The capital will be in the same ratio as profit sharing.At the date od C$\text{'}$s admission,A and B$\text{'}$s capital is R$40000$ and R$60000$ respectively.At the same date,the favourable bank balance amounts to R$10000$ and other tangible assets to R$90000$

Required

$2\mathrm{.}1$ Calculate goodwill according to the formulae for calculating goodwill partnership

$2\mathrm{.}2$ Journalize the allocation of goodwill to partners

Answer rating: 100% (QA)

21 Calculation of Goodwill according to the formula for calculating goodwill in a partnershi... View the full answer