Question 15

Ahmed, Mohammed, and Mahmood invested to establish a company for imports Hardware Tools. They decided to share capital and distributed the profits in equally. The total capital SR 270,000. Ahmed, Mohammed paid their share in partnership SR 180,000, and Ahmed paid SR 60,000 his full share.

The journal entry of the initial investments under Goodwill Method was.

A.

	Questions	Dr	Cr
D	Bank Mahmood Ahmed capital Mohammed Capital Mahmood Capital Goodwill	240,000 30,000	90,000 900,000 60,000 30,000

B.

	Questions	Dr	Cr
A	Investment Goodwill Ahmed capital Mohammed Capital Mahmood Capital	240,000 30,000	100,000 100,000 70,000

C.

	Questions	Dr	Cr
C	Investment Ahmed capital Mohammed Capital Mahmood Capital Goodwill	270,000	90,000 900,000 60,000 30,000

D.

	Questions	Dr	Cr
A	Cash Goodwill Ahmed capital Mohamed Capital Mahmood Capital	240,000 30,000	90,000 90,000 90,000