Question

Hidden Goodwill
7A. A and B are partners with capitals of 13,000 and 9,000 respectively. They admit C as a
partner for 1/5th share in the profits of the firm. C brings 8,000 as his capital. Give Journal
entries to record goodwill.
Ans. Hidden Goodwill * 10,000)​

Answer 1

Explanation:

To get the total capital of the firm then reciprocal of c's capital