Madhu and Neha were partners in a firm sharing profits and losses in the ratio of...
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Madhu and Neha were partners in a firm sharing profits and losses in the ratio of 3 : 5. Their fixed capitals were Rs.4, 00, 000 and Rs.6, 00, 000 respectively. On 1/1/2016, Tina 1 th was admitted as a new partner for share in the profits. Tina acquired her share of 4 profit from Neha. Tina brought Rs.4, 00, 000 as her capital which was to be kept fixed like the capitals of Madhu and Neha. Calculate the goodwill of the firm on Tina's admission and the new profit sharing ratio of Madhu, Neha and Tina. Also, pass necessary journal entry for the treatment of goodwill on Tina's admisson considering that Tina did not bring her share of goodwill premium in cash Madhu and Neha were partners in a firm sharing profits and losses in the ratio of 3 : 5. Their fixed capitals were Rs.4, 00, 000 and Rs.6, 00, 000 respectively. On 1/1/2016, Tina 1 th was admitted as a new partner for share in the profits. Tina acquired her share of 4 profit from Neha. Tina brought Rs.4, 00, 000 as her capital which was to be kept fixed like the capitals of Madhu and Neha. Calculate the goodwill of the firm on Tina's admission and the new profit sharing ratio of Madhu, Neha and Tina. Also, pass necessary journal entry for the treatment of goodwill on Tina's admisson considering that Tina did not bring her share of goodwill premium in cash
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Related Book For
South Western Federal Taxation 2016 Corporations Partnerships Estates and Trusts
ISBN: 9781305399884
39th edition
Authors: James Boyd, William Hoffman, Raabe, David Maloney, Young
Posted Date:
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