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Partnership Goodwill sharing

katiekitkat123katiekitkat123 Settling In NicelyRegistered Posts: 23
I have this question on partnership goodwill but its telling me my answer is wrong could anyone help.

Partners a & b share profits and losses 3:1 respectively goodwill is valued at £80,000 what is partner a's share of goodwill?

So I divided the £80,000 goodwill by 4 giving me £20,000 then times it by 3 (partner a's profit share) giving me £60,000. When I put this as the answer it say I'm wrong.

Any help on what I'm doing wrong would be great :)

Answers

  • rakeshsuwalrakeshsuwal LondonRegistered Posts: 79
    First goodwill is not a part of profit share, itso capital. 2nd-if you could post the full question I can help further. Cheers
  • katiekitkat123katiekitkat123 Settling In Nicely Registered Posts: 23
    This is the full question nothing else is given about the partnership or any other details the question is exactly word for word as written above. You can see why I am having difficulty with this question.
  • rakeshsuwalrakeshsuwal LondonRegistered Posts: 79
    You should be right then. Where is this question from?
  • katiekitkat123katiekitkat123 Settling In Nicely Registered Posts: 23
    Thank you for the reply. It was the correct answer after all it turn out that I need to put the decimal point in. So 60000.00 and not £60,000 Aren't computer tests great :/ It was an online knowledge test.
  • rakeshsuwalrakeshsuwal LondonRegistered Posts: 79
    =):p
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