Treatment Of Goodwill - Accountsprinciplesofaccounts Jamb Past Questions and Answers

Question 16 :

• JAMB 2018

	N
Stock at branch 1st January at cost	400
Goods sent to branch at cost	8000
Returns to head office	340
Cash sales	9160
Stock at branch 31st December at cost	720

Use the information below to answer the question.
Adex Ltd. Issues stock to its retail branches at cost price. The following particulars relate to Ede branch.

A. #1870
B. #1530
C. #1640
D. #1820

Question 17 :

• JAMB 2018

Why should a new partner contribute towards goodwill on his admission?

A. It is a norm
B. To ensure new partner also have a stake in the business
C. The firm into which he is entering already has some goodwill in the market
D. To purchase the business