(a)[3]
State three reasons why VC plc might want to buy the partnership.
(b)[3]
State three ways in which the purchase consideration might be settled.
(c)[5]
Advise Belinda whether she should agree to Arthur receiving half of the purchase consideration. Give reasons for your judgement.
(d)[2]
Suggest two reasons for the difference in the values for the equipment.
(e(i))[3]
Calculate the value of goodwill recorded in the books of VC plc.
(e(ii))[3]
Calculate the total profit on realisation made by the partnership.
(f)[2]
Explain the treatment of the total profit on realisation made by the partnership in (e)(ii).
(g)[4]
Explain why a revaluation reserve may appear in the financial statements of a limited company but not in the financial statements of a partnership.