P, Q and R are partners sharing profits equally. They decided that in future R will...
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P, Q and R are partners sharing profits equally. They decided that in future R will get 1/5 share in profits and remaining profit will be shared by P and Q equally. On the day of change, firm's goodwill is valued at 60,000. Give Journal entries arising on account of change in profit- sharing ratio. Also identify the value involves in adjustment of goodwill. P, Q and R are partners sharing profits equally. They decided that in future R will get 1/5 share in profits and remaining profit will be shared by P and Q equally. On the day of change, firm's goodwill is valued at 60,000. Give Journal entries arising on account of change in profit- sharing ratio. Also identify the value involves in adjustment of goodwill.
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Related Book For
Accounting
ISBN: 978-1118608227
9th edition
Authors: Lew Edwards, John Medlin, Keryn Chalmers, Andreas Hellmann, Claire Beattie, Jodie Maxfield, John Hoggett
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