Osei and Yabo were in partnership sharing profits and losses in the ratio of 2:3.
FINANCIAL
JAMB 2007
Osei and Yabo were in partnership sharing profits and losses in the ratio of 2:3. On admitting Takwa, the profit and loss sharing ratio was charged to 1:1:1. Suppose Takwa paid N30 000 for goodwill , this amount would be?
- A. credited to Takwa's current account
- B. debited to goodwill account
- C. share to all the partners' capital account
- D. credited to the old partners' capital account
Correct Answer: B. debited to goodwill account
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