IGCSE/GCSE/O & A Level/IB/University Student Forum

Qualification => Subject Doubts => GCE AS & A2 Level => Commerce => Topic started by: cs on October 18, 2011, 10:42:10 am

Title: Goodwill Accounting help needed
Post by: cs on October 18, 2011, 10:42:10 am

there's 3 picture attached,(picture is numbered 3,2,1)

in pic1, when goodwill increase from 10 to 30k, revaluation is done in goodwill account,

why for question in pic2, goodwill decrease when 21 to 15k, i did the same method in goodwill account, i didnt get the answer (working in pic3)

Title: Re: Goodwill Accounting help needed
Post by: Dasith on October 18, 2011, 06:09:32 pm

Quote from: cs on October 18, 2011, 10:42:10 am

there's 3 picture attached,(picture is numbered 3,2,1)

in pic1, when goodwill increase from 10 to 30k, revaluation is done in goodwill account,

why for question in pic2, goodwill decrease when 21 to 15k, i did the same method in goodwill account, i didnt get the answer (working in pic3)

err didnt u see that they write off the full 21000 in 1 may 2006, so good will a/c will be zero or no balance b/d by 31st oct 2006 . which meas 15000 godwill is an increase(credited) to godwill a/c & is not written off , as it dosent say it is written off

Title: Re: Goodwill Accounting help needed
Post by: cs on October 19, 2011, 04:26:26 pm

i understand now, thanks a lot for your help  :)