answer Q4 Q5

Q. 4. Explain the accounting treatment of Goodwill in case of admission of a new partner. (20) Q. 5 Salman and Imran agree to dissolve the partnership on 30" June, 2018, their Balance Sheet was as follow: (20) Balance Sheet Liabilities Rs. Assets Rs. Creditors 60,000 Cash 10,000 Bank Loan Account 80,000 Debtors 50,000 Capital Stock 200,000 Salman 200,000 Plant 140,000 Imran 100,000 Good will 40,000 44,0000 44,0000 The partners share profits and losses in proportion to their capitals. The debtors realized Rs. 42,000, Stock Rs. 180000, Plant 20% less than the book value and the goodwill Rs. 60,000. The creditors were paid off and the costs of dissolution amounted to Rs. 6,000