(a)[4]
State four advantages of a computerised accounting system to a business.
(b)[2]
Calculate Carl’s business goodwill.
(c)[2]
Explain why Carl’s goodwill calculation is based on the business profit.
(d)[6]
Prepare a statement showing how the capital account changes for each of Adul, Basha and Carl 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 he has made the right choice in merging with the partnership business. Justify your answer using both financial and non-financial factors.