L and M had been in partnership sharing profits and losses equally. P was admitted to the partnership and the partners continued to share profits and losses equally. Goodwill was valued at $48 000 but the partners agreed that no goodwill account would be retained in the books of account.
What were the accounting entries to record the goodwill?
A)debit L capital account $16 000, debit M capital account $16 000, credit P capital account $32 000
B) debit P capital account $32 000, credit L capital account $16 000, credit M capital account $16 000
C) debit L capital account $8000, debit M capital account $8000, credit P capital account $16 000
D) debit P capital account $16 000, credit L capital account $8000, credit M capital account $8000
Answers: 1
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