If the purchase price exceeds the net assets of a company; the excess amount is debited to _______?

By: |Published on: Nov 28|Categories: Accounting JAMB| 0 comments

A. Cash account
B. purchase account
C. goodwill account
D. sales account

Correct Answer:

Option C – goodwill account

Explanation

Goodwill is the excess of purchase consideration over the total value of the business

Users Also Read These:

SEE ALSO  What is the bar profits?

Copyright warnings! Do not copy.