Question on: JAMB Accounting - 2023

Based in the data given below, determine the goodwill:

 

Plant and Machinery

190000

Motor Vehicle

170000
Stock60000

Current Liabilities

50000

Purchase consideration

40000

 

A

₦110,000

B

₦30,000

C

₦90,000

D

₦80,000

Ask EduPadi AI for a detailed answer
Correct Option: B

Goodwill = Purchase consideration - Value of assets
Total value of assets = 190,000 + 170,000 + 60,000 - (50,000)
= 370,000

Hence, goodwill = 400,000 - 370,000
= ₦30,000

Add your answer

Notice: Please post responsibly.

Please share this, thanks!

No responses