Business purchase account and ordinary share capital account
Business purchase account, vendor account and ordinary share capital account
Business purchase account and vendor account
Ordinary share capital account, vendor account and unpaid share capital account
Correct answer is B
No explanation has been provided for this answer.
Debit goodwill #15,000, cash #20,000 and credit Mary's capital #35,000
Credit goodwill #15,000, cash #20,000 and debit Mary's #35,000
Debit goodwill #15,000, credit cash #20,000 and credit Mary's capital #20,000
Debit old partners capital #15,000, credit cash #20,000 and Mary's capital #35,000
Correct answer is A
Mary's capital contributed will be 15000 + 20000 = 35000 and will reflect a credit balance because money has gone out of Mary's purse
Goodwill will have a debit balance and moved to the balance sheet
In what way can goodwill be written off in a partnership business?
Using the partner's profit and loss sharing ratio
By neglecting the ratio of partners capital contributions
By sharing it unequally among the partners where no agreement exists
By sharing it among the active partners only
Correct answer is A
To put it in other words, if we want to carry forward existing Goodwill in the books, then the value of existing Goodwill should be deducted from the new value of Goodwill. This excess value of Goodwill must be credited to the existing partners capital accounts in their profit sharing ratio.
3:5
1:2
2:5
1:5
Correct answer is D
No explanation has been provided for this answer.
#62,000
#48,000
#44,000
#43,000
Correct answer is B
No explanation has been provided for this answer.