Answered step by step
Verified Expert Solution
Question
1 Approved Answer
ndn Entire goodwill should be credited to K's Capital only, Since Lis gaining 11/56 from K, he must have to pay in proportionate amount to
ndn
Entire goodwill should be credited to K's Capital only, Since Lis gaining 11/56 from K, he must have to pay in proportionate amount to kas under, i.e., if M brings for 8/56 73,600, L should pay for 11/564,950 (i.e. * 3.600 x 11/56 x 56/8) Illustration 34. 051 Red and White are partners in a firm sharing profits and losses is the ratio of 3:2. On 1st July 2013 the positions of the firm as follows: Liabilities Assets Capital Accounts: Building 50.000 Red Machinery 2.50,000 White 1.50,000 Furniture 40,000 98.000 Stock 60,000 2,48,000 Debtors 90,000 General Reserve 84,000 Cash 12,000 Sundry Creditors 1,70,000 5,02,000 5,02,000 Blue joined the firm as a partner from this date and the following terms and conditions were agreed upon: (a) Red, White and Blue will share the future profits of the firm in the ratio 5:3:2, respectively. (b) Blue would first pay 10,000 as his share of Goodwill and this sum is to be retained in the business. (c) The value of Machinery is to be increased byStep by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started