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Accounting Paper2 Doubt...

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I Jimmy I:

--- Quote from: Jason on May 11, 2009, 07:15:30 am ---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

Thank You M8, Altho I already got the answer and again Thank You
I Hope This helps.. :)

--- End quote ---

Monica:
ya thats right the answer is goodwill, just remember this formula (my teacher gave it to me), Goodwill = Purchase Price - Net Assets

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