a. b. Abel and Baker decided to come together on 1 Immary and form a business...
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a. b. Abel and Baker decided to come together on 1 Immary and form a business sharing profits and losses equally. Abel contributed 35,000 and Baker 25,000 respectively. On 1 September, 2018, they decided to admit Charles, which altered their profit and loss sharing ratio to 2:1:1. The following conditions were equally agreed upon: Charles was to pay into the firms at count the sum of $415,000, as his capital contribution, Goodwill was valued at N20,000 lut is yet to be recorded in the books of the partnership. Required: prepare the accounting entries to record the above transactions based on: (i) if goodwill is to remain in the books (i) if goodwill is not to remain in the books a. b. Abel and Baker decided to come together on 1 Immary and form a business sharing profits and losses equally. Abel contributed 35,000 and Baker 25,000 respectively. On 1 September, 2018, they decided to admit Charles, which altered their profit and loss sharing ratio to 2:1:1. The following conditions were equally agreed upon: Charles was to pay into the firms at count the sum of $415,000, as his capital contribution, Goodwill was valued at N20,000 lut is yet to be recorded in the books of the partnership. Required: prepare the accounting entries to record the above transactions based on: (i) if goodwill is to remain in the books (i) if goodwill is not to remain in the books
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Answer rating: 100% (QA)
I If goodwill is to remain in the books Dr Abels Capital Account 43500... View the full answer
Related Book For
Horngrens Accounting
ISBN: 978-0133855388
10th Canadian edition Volume 2
Authors: Tracie L. Miller Nobles, Brenda L. Mattison, Ella Mae Matsumura, Carol A. Meissner, Jo Ann L. Johnston, Peter R. Norwood
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