Purchase of entity means group of assets and liabilities taken over for a lump-sum consideration. When the consideration paid is more than fair value of net assets taken over, then such excess shall be recorded as Goodwill . The Goodwill paid for the acquisition of the business should be determined and journal entry to be passed on acquisition of business.

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Chapter 10, Problem S10.13SE

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Purchase of entity means group of assets and liabilities taken over for a lump-sum consideration. When the consideration paid is more than fair value of net assets taken over, then such excess shall be recorded as Goodwill.

The Goodwill paid for the acquisition of the business should be determined and journal entry to be passed on acquisition of business.

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