Section B: Financial Accounting Practice
Question 6:
(a) Calculate the goodwill on the purchase of Ubah Enterprises;
(b) Prepare in the books of Okere Ltd:
(i) Purchase of Business Account;
(ii) Ubah Enterprises Account.
Observation
Comment
Most candidates attempted this question and the performance was good. Candidates’ performance portrays a good understanding of the topic. However, some candidates’ weakness were expressed in the preparation of purchase of business account and Ubah’s enterprises account in the purchaser’s (Okere Ltd) books.