Question on: WAEC Accounting - 2015
Use the following information to answer the question below
Mr White acquired Mr Black's business for GH¢ 410,000. The total assets were GH¢ 670,000 and liabilities amounted to GH¢ 320,000.
How much was paid for goodwill?
A
GH¢ 350,000
B
GH¢ 260,000
C
GH¢ 90,000
D
GH¢ 60,000
Ask EduPadi AI for a detailed answer
Correct Option: D
Assets 670,000 - liabilities 320,000 = 350,000 (business value after liabilities claims)
Purchase price 410,000 - 350,000 business value = 60,000 goodwill
Add your answer
Please share this, thanks!
No responses