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
Answer is B
