X and Y are partners sharing profit and losses at 2/5 and 3/5 respectively. They decided...

 

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X and Y are partners sharing profit and losses at 2/5 and 3/5 respectively. They decided to admit Z as new partner. The new partner decides to pay OMR10,000 for his share of goodwill OMR10,000 to the partnership. Which of the following accounting entries should be done in partnership books: A) Debit goodwill account by OMR10,000 B) Credit Y capital account by OMR4,000 C) Debit Z capital account by OMR6,000 D) None of the above X and Y are partners sharing profit and losses at 2/5 and 3/5 respectively. They decided to admit Z as new partner. The new partner decides to pay OMR10,000 for his share of goodwill OMR10,000 to the partnership. Which of the following accounting entries should be done in partnership books: A) Debit goodwill account by OMR10,000 B) Credit Y capital account by OMR4,000 C) Debit Z capital account by OMR6,000 D) None of the above

Answer rating: 100% (QA)

2s Share Goodwill og e Sacrificing ratio 21 not z ... View the full answer