A and B were equal partners in a firm. On 1-1-2001, they admitted C on the...
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A and B were equal partners in a firm. On 1-1-2001, they admitted C on the following conditions: C should bring Rs.20,000 as capital, and Rs.10,000 as goodwill. In future A, B and C would share profits and losses in the ratio of 2 : 1:2. A and B will share the goodwill in the ratio of A 1:1 B 3:1 C 1:3 D 2:1 A and B were equal partners in a firm. On 1-1-2001, they admitted C on the following conditions: C should bring Rs.20,000 as capital, and Rs.10,000 as goodwill. In future A, B and C would share profits and losses in the ratio of 2 : 1:2. A and B will share the goodwill in the ratio of A 1:1 B 3:1 C 1:3 D 2:1
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Correct option is C At the time of admission of a new partner goodwil... View the full answer
Related Book For
Financial Reporting and Analysis
ISBN: 978-0078025679
6th edition
Authors: Flawrence Revsine, Daniel Collins, Bruce, Mittelstaedt, Leon
Posted Date:
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