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Accounting Paper2 Doubt...

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I Jimmy I:
Sup guyz,
As you all know, playtime is OVER!!!!!
The exams start from tomorrow(Accounting Paper2)
Anywayz I have a doubt which I really need to clear out.
Question : Freda purchased a business for $200 000. The net assets of the business were valued
at $170 000.
Name the accounting term for the difference between these two amounts.

Plz answer as soon as possbile.
Thank you! :D

I Jimmy I:
If some1 would plz attach the June 2002 marking scheme...?
I would really appreciate it!
Thank You

I Jimmy I:
Anyone????

Jake:
The Difference is The Goodwill..
When you buy a business you buy it at a price the owner is selling it at.
there is also and extra charge and this charge is known as goodwill.
you are taking advantage of the business's product and customer base that already exists because of the previous owners hard work and dedication


I Hope This helps.. :)

SGVaibhav:
hi Jason
wow nice one

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