Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

CEE, DEE and EEE shared profit and losses based on 5:3:2 was allowed to withdraw from the partnership on 31 December 2020 with P600,000cash as

CEE, DEE and EEE shared profit and losses based on 5:3:2 was allowed to withdraw from the partnership on 31 December 2020 with P600,000cash as full settlement. The condensed statement of financial position is as follows:

ASSETS:

Due from EEE, P250,000

Goodwill, P2000,000

Other Assets, P4750,000

LIABILITIES and CAPITAL:

Liabilities, P2,000,000

Due to DEE, P750,000

CEE, Capital, P1,750,000

DEE, Capital, P1,500,000

EEE, Capital, P1,000,000

Using Goodwill method, how much is the total Goodwill resulting from the withdrawal of EEE?

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Horngrens Accounting The Managerial Chapters

Authors: Tracie L. Miller Nobles, Brenda L. Mattison, Ella Mae Matsumura

12th edition

013448682X, 978-0134486826

More Books

Students also viewed these Accounting questions

Question

2. To store it and

Answered: 1 week ago