Match the following list 1 with list 2.
| LIST 1 | LIST 2 |
| A) Goodwill | I) Tangible asset |
| B) Land and building | II) Accounted in books |
| C) Purchased goodwill | III) Intangible asset |
| D) Self-generated goodwill | IV) Not accounted in books |
Choose the correct answer from the options given below.
Answer & explanation
Correct answer: option 2
The correct answer is option 2- A-III, B-I, C-II, D-IV.
| LIST 1 | LIST 2 |
| A) Goodwill | III) Intangible asset |
| B) Land and building | I) Tangible asset |
| C) Purchased goodwill | II) Accounted in books |
| D) Self-generated goodwill | IV) Not accounted in books |
* Goodwill is an intangible asset. It is accounted according to the AS-26.
* Land and building is a tangible asset which can be seen & touched.
* Purchased goodwill is accounted in books because consideration is paid for it.
* Self-generated goodwill is not accounted in books because no consideration is paid for it. It is generated due to internal efforts of the partners.