Topic 15 Flashcards
1
Q
Why are Partners Capital Accounts used and state examples
A
It is used to record changes in partnership agreement
- profit sharing ratio may have changed
- Revaluation of Assets
- New partner
- Partner may retire or die
2
Q
What is Goodwill?
A
This is the value of a business as a going concern
3
Q
Reasons for Goodwill?
A
Established Customer base
Established links with suppliers
Good location
Good rep due to product quality and good service
