Hi Ciemandy,
In order to adjust for goodwill (if you are writing goodwill back out of the books) you would:
1. Dr Goodwill, Cr original partners (in original profit sharing ratio)
then to write the goodwill out, you would:
2. Cr Goodwill, Dr new partners
This leaves you with 0 in the goodwill account, and adjusts the partners capital accounts for the goodwill that has been valued.
I assume I am OK to say this as it is not an actual examination question, and is a mock question...
Hope this clarifies things
Cheryl
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