disolution

Question 1

Dissolution why

Answer 1

 Conflicts Between partners
 Decline in Profits or Continuous losses
 Bankcruptcy
 Change to private or public limited company
 Death Of Partner

Question 2

types of goodwill

Answer 2

• Inherent Goodwill:
  assessment of brand img, prime location,customer loyaly, staff quality for a business not record IAS 38
• Purchased Goodwill: Goodwill which is acquired by company as a result of merger. It is recorded in the books as per IAS 38

Question 3

goodwill formula

Answer 3

G𝑜𝑜𝑑𝑤𝑖𝑙𝑙=𝑃𝑢𝑟𝑐ℎ𝑎𝑠𝑒 𝐶𝑜𝑛𝑠𝑖𝑑𝑒𝑟𝑎𝑡𝑖𝑜𝑛−𝐹𝑎𝑖𝑟 𝑉𝑎𝑙𝑢𝑒 𝑂𝑓 𝑁𝑒𝑡 𝐴𝑠𝑠𝑒𝑡𝑠 𝑇𝑎𝑘𝑒𝑛 𝑂𝑣𝑒𝑟

Question 4

positive goodwill

Answer 4

Purchase Consideration>Fair Value Of Net Assets Taken Over, then there will be positive
Goodwill