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Question: In 1955, A set up in business as a sole trader. On 1st January, 1956, B. joined him as a partner taking one-third of the profits and paying £1,200 as a premium for Goodwill. On 1st January, 1958, C was admitted as a new partner. It was decided to raise a Goodwill Account in the books of the firm and the value placed upon this asset was £6,000. The profit sharing ratio of the new firm was A: one-half, B: one-third and C: one-sixth. From 1958 to 1961, the Goodwill balance was written down in the books of the firm and on 31st December 1961, it stood at £3,000. The business was then sold and the amount received for Goodwill was £3,600. Prepare a statement showing the net amount gained or lost by each of the partners on account of Goodwill from the commencement of the business to the final date of sale.
Hubbard argues that the Fed can control the Fed funds rate, but the interest rate that is important for the economy is a longer-term real rate of interest. How much control does the Fed have over this longer real rate?
Coures:- Fundamental Accounting Principles: - Explain the goals and uses of special journals.
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