Osei and Yabo were in partnership sharing profits and losses in the ratio of 2:3. On admitting Takwa, the profit and loss sharing ratio was charged to 1:1:1. Suppose Takwa paid N30 000 for goodwill , this amount would be?

Osei and Yabo were in partnership sharing profits and losses in the ratio of 2:3. On admitting Takwa, the profit and loss sharing ratio was charged to 1:1:1. Suppose Takwa paid N30 000 for goodwill , this amount would be?

A credited to Takwa's current acount
B debited to goodwill account
C share to all the partners' capital account
D credited to the old partners' capital account

jamb 2007 accounting

The correct answer is B. debited to goodwill account

No explanation given

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