Hello Everyone
I am solving various partnership admission questions involving Bonus method and Goodwill method. I am confused as how to decide whether the question is asking for Goodwill or Bonus method.
For example :
A and B capital in the partnership is of Rs. 15000 & 25000. They decided to add C into the firm. C Invests 20,000 and get 1/3 interest.
I am confused which method to use, Goodwill or Bonus, to solve this question.
Your help is needed !
Thanks
I am solving various partnership admission questions involving Bonus method and Goodwill method. I am confused as how to decide whether the question is asking for Goodwill or Bonus method.
For example :
A and B capital in the partnership is of Rs. 15000 & 25000. They decided to add C into the firm. C Invests 20,000 and get 1/3 interest.
I am confused which method to use, Goodwill or Bonus, to solve this question.
Your help is needed !
Thanks