(a)[2]
Explain why the partners were uncertain about the value of the goodwill.
(b)[2]
State which partner would want the goodwill valuation to be as low as possible. Give a reason for your answer. Partner ........................................ Reason .........................................
(c)[4]
Calculate the profit on realisation earned by the partnership.
(d)[6]
Discuss how Betty was affected by agreeing to Andy's suggestion to alter the partnership agreement. Support your answer with calculations.
(e)[6]
In the books of AD plc, prepare the journal entry to record the acquisition of the partnership. Include a narrative.
(f)[5]
Advise Betty on whether she ought to keep her shares in AD plc or sell them. Justify your answer.