Case AB A C D Partner's Capital X Y Z Goodwill in business books Not available...
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Case AB A C D Partner's Capital X Y Z Goodwill in business books Not available 50,000 70,000 30,000 OMR 120,000 90,000 82,000 Actual value of goodwill 60,000 75,000 45,000 30,000 X,Y and Z share profits and losses at 1/4, 1/4 and 2/4 respectively. Partner X decide to leave the partnership. You are required to show: A) Journal entries necessaries if goodwill account to be opened for all cases. B) Capital accounts for all cases Case AB A C D Partner's Capital X Y Z Goodwill in business books Not available 50,000 70,000 30,000 OMR 120,000 90,000 82,000 Actual value of goodwill 60,000 75,000 45,000 30,000 X,Y and Z share profits and losses at 1/4, 1/4 and 2/4 respectively. Partner X decide to leave the partnership. You are required to show: A) Journal entries necessaries if goodwill account to be opened for all cases. B) Capital accounts for all cases
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ANSWER A The amount of goodwill is the cost to purchase the business minus the fair market value of ... View the full answer
Related Book For
Financial Accounting Information For Decisions
ISBN: 978-0324672701
6th Edition
Authors: Robert w Ingram, Thomas L Albright
Posted Date:
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