Accounting WAEC

The amount of goodwill was?

Use the following information to answer this question

A business whose assets consisted of stock N15,000 and debtors N8,000 was bought by issuing 20,000 ordinary shares of N1 each at a premium of 20 percent.

A. N4,000
B. N3,000
C. N2,000
D. N1,6000
E. N1,000

Correct Answer:

Option E – N1,000

Sunday

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