(a)[4]
State four advantages of a computerised accounting system for a business.
(b)[2]
Calculate the goodwill for Carl’s business.
(c)[2]
Explain why Carl’s goodwill is calculated using the business’s profit.
(d)[6]
Prepare a statement to show the movement in each of Adul’s, Basha’s and Carl’s capital accounts immediately after the merger.
(e)[6]
Calculate the total assets of the new business immediately after the merger. Show your workings.
(f)[5]
Advise Carl whether or not he has made the right choice to merge with the partnership business. Justify your answer using both financial and non-financial factors.