If three partners A, B & C are sharing profits as 5: 3: 2, then on...
Fantastic news! We've Found the answer you've been seeking!
Question:
Transcribed Image Text:
If three partners A, B & C are sharing profits as 5: 3: 2, then on the death of a partner A, how much B & C will pay to A's execute on account of goodwill if Goodwill is to be calculated from 2 years purchase of the last three years average profits. Profits for three years are: Rs.6, 58, 000; Rs.6, 92, 000 and Rs.8, 10, 000. If three partners A, B & C are sharing profits as 5: 3: 2, then on the death of a partner A, how much B & C will pay to A's execute on account of goodwill if Goodwill is to be calculated from 2 years purchase of the last three years average profits. Profits for three years are: Rs.6, 58, 000; Rs.6, 92, 000 and Rs.8, 10, 000.
Expert Answer:
Answer rating: 100% (QA)
Profit sharing ratio of A B and C 5 32 As share 510 As share of goodwill Total goodwill As sh... View the full answer
Related Book For
Foundations of Financial Management
ISBN: 978-1259194078
15th edition
Authors: Stanley Block, Geoffrey Hirt, Bartley Danielsen
Posted Date:
Students also viewed these accounting questions
-
It has often been said that if the company cant earn a rate of return greater than the cost of capital, it should not make investments. Explain.
-
A company terminated an employee and sent him notification of his COBRA rights via certified mail with return receipt requested. The former employee was out of the house on two occasions when the...
-
If we knew that energy was being transmitted from one place to another, how might we determine whether the energy was being carried by particles (material bodies) or by waves?
-
On October 1, 2017, Sharp Company (based in Denver, Colorado) entered into a forward contract to sell 100,000 rubles in four months (on January 31, 2018) and receive $39,000 in U.S. dollars. Exchange...
-
Using the Hotel schema given at the start of the Exercises at the end of Chapter 4, determine whether the following queries are semantically correct: (a) SELECT r.type, r.price FROM Room r, Hotel h...
-
a. Based on the sources and requirements listed above, create a dimensional model that will be used for the dimensionally modeled data warehouse for Big Z Inc. b. Using data from Figures 9.31 and...
-
True or False. For a beam with grid points \(-1,1,2,3, \ldots\), the central difference approximation of \(\left.\frac{d^{2} W}{d x^{2}} ight|_{1}=0\) yields \(W_{2}-2 W_{1}+W_{-1}=0\).
-
On October 1, 2016, Kristal Corp. issued $700,000, 5%, 10-year bonds at face value. The bonds were dated October 1, 2016, and pay interest annually on October 1. Financial statements are prepared...
-
How has the shift towards remote and hybrid work affected diversity and inclusion efforts, and what specific practices can ensure that remote workers from diverse backgrounds feel included and valued?
-
An employee earns $55,000 per year and is paid on a semi-monthly pay schedule. The employee enjoys the benefit of a company paid cell phone for personal use (cost is $150 per month) and receives 6%...
-
Related to the Apply the Concept: "Price Floors in Labor Markets: The Debate over Minimum Wage Policy"] Ekat- erina Jardim, Jacob Vigdor, and colleagues at the University of Washington concluded that...
-
Consider the populations given in Problems 33-36. a. Find the standard divisor. b. Find the standard quota for each precinct. c. Total, rounding the standard quotas up. d. Find a modified divisor...
-
The city district attorney has 60 litigators to be divided among three courts. The following table shows the schedule of the number of pending cases for each court. Apportion the 60 litigators using...
-
The philosophy department is selecting a chairperson, and the candidates are Andersen (A), Bailey (B), and Clark (C). Here are the preferences of the 27 department members: a. Who is the Condorcet...
-
Determine the winner, if any, using the voting methods in Problems 29-34. Majority rule In voting among three candidates, the outcomes are reported as: (CBA) (ACB) (BAC) (BCA) (CAB) 3 0 4 2 5 (ABC) 8
-
Find the standard divisor (to two decimal places) for the given populations and number of representative seats in Problems 15-22. Population 630 # Seats 5
-
According to the zero, first and second order kinetics, consider: a) The following chemical reaction: A Assume k 4.52 x 10-5 +1. products shows first order kinetics with respect to A; rate = = k[A]....
-
How do individual companies respond to economic forces throughout the globe? One way to explore this is to see how well rates of return for stock of individual companies can be explained by stock...
-
Bombs Away Video Games Corporation has forecasted the following monthly sales: Bombs Away Video Games sells the popular Strafe and Capture video game. It sells for $5 per unit and costs $2 per unit...
-
Assume a corporation has earnings before depreciation and taxes of $90,000, depreciation of $40,000, and that it is in a 30 percent tax bracket. Compute its cash flow using the following format....
-
Mr. Meyers wishes to know how many shares are necessary to elect 5 directors out of 14 directors up for election in the Austin Power Company. There are 150,000 shares outstanding. (Use Formula 17-1...
-
Would you rather be involved in warfare as a member of a forager society or as a member of an industrial nation? Why?
-
How can the study of contemporary foragers provide us with an understanding of Paleolithic lifestyles?
-
What types of economic exchange would you expect to find in hunter-gatherer societies? Are the individuals in foraging societies more altruistic, magnanimous, and generous, or are they no more nobler...
Study smarter with the SolutionInn App