Omar wants to become a trader. He chooses to purchase an existing business in a favourable location. The price he pays for the business is greater than its net asset value. In the records of the new business, how is the additional amount paid shown?
- Acapital debited, goodwill credited
- Bgoodwill debited, bank credited
- Cgoodwill debited, capital credited
- Dpremises debited, goodwill credited