Partnership Question Unit 5
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Hello,
We have our simulation Part 2 to take next week it's on the partnership accounts.
I have been doing the questions in the FTC book,now I've got a question.
3 Parters, 1 retires, goodwill calculated at £30,000, but the profit/losses are always calculated equally.
The answer is 10,000 to each partner, but say the profit/losses were shared say 2:2:1, would this alter how much goodwill is shared?
many thanks, Louise
We have our simulation Part 2 to take next week it's on the partnership accounts.
I have been doing the questions in the FTC book,now I've got a question.
3 Parters, 1 retires, goodwill calculated at £30,000, but the profit/losses are always calculated equally.
The answer is 10,000 to each partner, but say the profit/losses were shared say 2:2:1, would this alter how much goodwill is shared?
many thanks, Louise
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Comments
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Re:Partnership Question Unit 5
The Goodwill total would still be £30,000. But with the new ratio it would be shared out £12,000: £12,000 & £6,000.
Hope that answers your question.
Haven't taken my simulation yet, hoping it's not too hard!0 -
Re:Partnership Question Unit 5
Thanks for your help, fingers crossed for Wednesday!!
Louise0