Ngozi and Musa with a capital of #30,000 each decide to admit Mary into the partnership business with a capital of #20,000 and goodwill #15,000.If the profits and losses are to be shared equally, the journal entries to record goodwill are
a
debit goodwill #15,000, cash #20,000 and credit Mary's capital #35,000
b
credit goodwill #15,000, cash #20,000 and debit Mary's #35,000
c
debit goodwill #15,000, credit cash #20,000 and credit Mary's capital #20,000
d
debit old partners capital #15,000, credit cash #20,000 and Mary's capital #35,000
Explanation
Correct Option
aVideo Explanation
No video available
Post your Contribution
Share:
Discussions (0)
No comments yet
Be the first to comment
