Question

Alls. Debit Y by < 10,800 and 2 by < 5,400 and Creu Dy 5. (Different Cases of Goodwill) X, Y and Z who are presently sharing profits and losses in the ratio of 5: 3:2 decide to share future profits equally with effect from 1st April 2019. The goodwill of the firm has been valued at 1,08,000. Show the necessary accounting treatment under each of the following alternative cases: (i) When no goodwill appears in the books. (ii) When goodwill appears in the books at 1,08,000. (iii) When goodwill appears in the books at 18,000. (iv) When goodwill appears in the books at * 1,26,000.
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Answer 1

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