UK goodwill and drawings?

May 19, 2013
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Am looking for a bit of help with the following

At 1 May 2011 Elizabeth was admitted into the partnership but no records were made other than the drawings noted above. As she is the mother of one of the existing partners it has been decided that all profits in the future will be split equally. Goodwill, which is not to be retained in the accounts of the new partnership, was deemed to be £600,000 at 30 April 2011. Elizabeth paid 250000 into the partnership to represent her capital and this money was immediately withdrawn by Katherine (15000) and William (235,000).

I have a list of other figures assests, liabilities, sales expenses etc and am to prepare an income statement, appropriation account and statement of financial position.

my questions are what do I do with the goodwill? do I treat it as though it never existed and assume that it was just immediately withdrawn by the other two partners?

And the second one is what do I do with the fact that Elizabeth paid in 250,000 capital and Katherine and William withdrew it? would this be classed as drawings?

Any help would be really appreciated, thanks in advance



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