A-LevelAccountingPreparation of financial statements9706/12 · Oct/Nov 2014 · Q91 Mark
Goodwill is adjusted in partners' accounts when there is a change in the profit sharing ratio. How is this recorded?
Acapital accounts in new profit sharing ratio, capital accounts in old profit sharing ratio
Bcapital accounts in old profit sharing ratio, capital accounts in new profit sharing ratio
Ccurrent accounts in new profit sharing ratio, current accounts in old profit sharing ratio
Dcurrent accounts in old profit sharing ratio, current accounts in new profit sharing ratio
✓ Correct answer
A: capital accounts in new profit sharing ratio, capital accounts in old profit sharing ratio
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