Question $3$

Study the scenario and complete the questions that follow:

Apple and Blue Partners

Apple and Blue are partners and share profits and losses in the ratio of $2$:$3,$ respectively. Carl 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 of Carl's admission, Apple and Blue's capital is R$40000$ and R$60000,$ respectively. At the same date, the favorable 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 in partnerships.

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

End of Section C

Goodwill

$\backslash (($R $60000\backslash$times $3)-($R $80000+$R$(20000)\backslash )$ R$180000-19000$ U