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Home Questions Y7EDKZKCDF
Target Exam

CUET

Subject

Accountancy

Chapter

Admission of a Partner

Question:

Match the following list 1 with list 2.

LIST 1 LIST 2
1) Goodwill a) Tangible asset
2) Land and building b) Accounted in books
3) Purchased goodwill c) Intangible asset
4) Self-generated goodwill d) Not accounted in books

 

Options:

1) b 2) a 3) c 4) d

1) c 2) a 3) b 4) d

1) a 2) c 3) b 4) d

1) c 2) a 3) d 4) b

Correct Answer:

1) c 2) a 3) b 4) d

Explanation:

The correct answer is option 2- 1) c 2) a 3) b 4) d.

* 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.

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