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ScotlandAccountingQuick questions

Financial Accounting

Quick questions on Accounting for partnerships, goodwill and changes - SQA Advanced Higher Accounting

2short Q&A pairs drawn directly from our worked dot-point answer. For full context and worked exam questions, read the parent dot-point page.

What is q1?
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Net profit is GBP 60,000. Interest on capital totals GBP 6,000 and there are no salaries or interest on drawings. Partners share residual profit 1:1.
What is q2?
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Goodwill of GBP 40,000 is credited to old partners M and N (ratio 1:1) and then written off among M, N and the new partner O in the ratio 2:1:1. State O's goodwill debit. [3 marks]

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