A, B & C are partners sharing profits and loss in the ratio 3: 2: 1....
Fantastic news! We've Found the answer you've been seeking!
Question:
Transcribed Image Text:
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
Expert Answer:
Answer rating: 100% (QA)
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:
Students also viewed these accounting questions
-
An international firm requires a rate of return of 15% domestically and in other developed countries, but it requires 25% in less-developed countries. Does this requirement mean that the firm is...
-
An international firm requires a rate of return of 15% domestically and in developed countries, but 25% in less-developed countries. Does this requirement mean that the firm is exploiting the...
-
An observed frequency distribution is as follows: Number of successes 0 1 2 3 Frequency 89 133 52 26 a. Assuming a binomial distribution with n = 3 and p = 1/3, use the binomial probability...
-
Scott incorporates his sole proprietorship as Superior Corporation and transfers its assets to Superior in exchange for all 100 shares of Superior stock and four $7,500 interest-bearing notes. The...
-
On October 26, Sandor received an invoice dated October 24. The amount billed was $815.49 with terms 2/20, n/45, ROG. The goods were received on November 4. On November 21, Sandor paid $500 on the...
-
Balance sheet format, terminology, and accounting methods Exhibit 3.5 presents the balance sheet prepared by Ericsson, the Swedish telecommunications firm, for the years ended December 31, 2007, and...
-
Repeat Example 7.3 using \(10 \mathrm{~kg} / \mathrm{h}\) of solvent in each stage. Data From Example 7.3:- The feed of Example 7.2 is extracted three times with pure chloroform at 298 K, using 8...
-
At the end of its first year of operations on December 31, 2010, CNU Companys accounts show the following The capital balance represents each partners initial capital investment. Therefore, net...
-
A. Calculate the work, w , (in J) when 8.9 litre of an ideal gas at an initial pressure of 83.1 atm is expanded to a final pressure of 0.66 atm against a constant exteral pressure of 0.66 atm. Assume...
-
1. Jim Adams posts the column totals and individual transactions in "Other" columns to the appropriate general ledger account and updates each general ledger account balance. He places a posting...
-
you have been put in charge of developing an incident tracking database for a regional airline. Your database must consist of a minimum of 5 tables but no more than 8 tables, with sufficient fields...
-
You are considering buying an existing company. You do a valuation of their assets and liabilities. The fair value of their total assets equal $500,000. The fair value of their total liabilities...
-
Estimates of future product demand, which are the amount of a product that customers will want to buy, are called: a. sales forecasts b. sales divining c. sales diving d. sales deriving
-
ABC Co had sales revenue of $60,000 and cost of goods sold of $40,000. They also had the following changes in some selected current assets and current liabilities (not all of these accounts are...
-
What best describes the following equation? Net income = (Unit contribution margin x quantity) Fixed costs. A : This is a version of the net income equation that explicitly uses contribution margin...
-
An "Ordering and Receiving Materials" cost pool would most likely have as a cost driver: a) number of purchase orders. b) number of inspection tests. c) machine hours. d) number of setups.
-
complete the code where it says // your code here package cp213; import java.awt.GridLayout; import java.awt.event.ActionEvent; import java.awt.event.ActionListener; import java.awt.event.ItemEvent;...
-
Time Solutions, Inc. is an employment services firm that places both temporary and permanent workers with a variety of clients. Temporary placements account for 70% of Time Solutions' revenue;...
-
Gift4U produces one single product, a small reading tablet, and sells it at $120 per unit. Its current annual sales are $240,000. Its annual fixed costs include factory rent, $43,400; depreciation...
-
CompuTrain Learning Centre delivers two services, IT training and Office training, in the same location. Last month, the centre experienced the following costs and results: The IT training manager...
-
The Futons for You Company sells batches of custom-made futons to customers and uses predetermined rates for fixed overhead, based on machine hours. The following data are available for last year:...
-
A newspaper recently lowered its price from $5.00 to $3.00. As it did, the number of newspapers sold increased from 240,000 to 280,000. a. What was the newspapers elasticity of demand? b. Given that...
-
Suppose average movie ticket prices are $8.50 and attendance is 1.2 billion. The price of tickets rises to $9.50 and attendance rises to 1.4 billion. a. What happened to total revenue? b. If you were...
-
Which of the following producers would you expect to support a tax on beer? Which would not? Explain your answer. a. Producers of hard liquor. Cross-price elasticity with beer: 0.11. b. Producers of...
Study smarter with the SolutionInn App