WAEC Accounting 2015 Objective — Question 38
Question 38 of 50 from the West African Examinations Council (WAEC) Accounting 2015 Objective paper, with the correct answer and a full explanation.
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The double entry to record the goodwill in the books is debit
- A. Cash Account and credit Goodwill Account
- B. Goodwill Account and credit Purchase of Business AccountCorrect
- C. Goodwill Account and credit Cash Account
- D. Purchase of Business Account and credit Cash Account
Explanation
When a business is purchased and goodwill arises, the entry is: Dr Goodwill Account, Cr Purchase Consideration (of Business) Account.
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