Ask Experts Questions for FREE Help !
Ask
    Sister99's Avatar
    Sister99 Posts: 3, Reputation: 1
    New Member
    		  
    #1

    Aug 15, 2009, 09:37 PM
    Preparation of a withdrawal of a partner
    The total of the partners' capital accounts was $110,000.00 before recognition of partnership goodwill in preparation for the withdrawal of a partner whose profit and loss sharing ratio is 20%.
    He was paid $28,000.00 by the firm in final settlement for his interest.
    The remaining partners' capital accounts excluding their share of the goodwill totaled $90,000.00 after his withdrawal.
    The total goodwill of the firm agreed upon was?
    rehmanvohra's Avatar
    rehmanvohra Posts: 739, Reputation: 27
    Senior Member
    		  
    #2

    Aug 15, 2009, 11:54 PM

    It would be better if you were to provide your answer for guidance. However, in order to help you out, the amount of goodwill attributed to the retiring partner is the amount paid less the amount of his capital before retirement. Calculate the total goodwill based on the retiring partner's share in the business.
    morgaine300's Avatar
    morgaine300 Posts: 6,561, Reputation: 276
    Uber Member
    		  
    #3

    Aug 16, 2009, 04:37 PM

    Let's keep this all in the same thread:
    https://www.askmehelpdesk.com/accoun...ng-387442.html
Not your question? Ask your question View similar questions
 

Question Tools Search this Question
Search this Question:

Advanced Search

Add your answer here.


Check out some similar questions!

F1-OPT student TAX preparation [ 1 Answers ]

I am working on my OPT and my wife is working on H1B.Which form I need to submit if I submit jointly? Thank you in advance

Wax preparation [ 2 Answers ]

Hi I'm looking to do leg waxing at home. I want to know how to prepare wax at home. Celineangeline

Hardship withdrawal for early withdrawal of 401K [ 0 Answers ]

I am, 56 years old, live in the State of Florida, and just lost my job. I have a small 401K ($6,000) with this company and want to withdraw all of it and put it in a savings account to help tide me over until I find another job. I know I will be charged a 10% early withdrawal fee, and I also...

View more questions Search