Day: October 10, 2022

Lucy Ltd has the following balance sheet summary:

• Fixed assets at net book value – £120,000
• Net current assets – £30,000
• Total Assets – £150,000
• Financed by capital and reserves – £150,000

The fixed assets are then revalued at £180,000, and the net current assets at £20,000. The business is finally acquired for £225,000.

What is the payment for Goodwill?

Select ONE answer:

1. £25,000
2. £45,000
3. £75,000
4. £105,000

Show your workings to arrive at your answer, and explain and justify your reasons:

……………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………

This multiple-choice question is suitable for Accounting KS5 classes.

The answer is 1

1. Correct = £225,000 – £180,000 – £20,000 = – > £25,000
2. Not correct
3. Not correct
4. Not correct

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