Asset purchase agreement

Treatment of existing goodwill.

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Evening folks. I have a limited company client which is selling the goodwill and assets it holds via an asset sale agreement. There is existing goodwill in the company which was generated when it was incorporated; can anyone advise on how this is now dealt with in the books i.e. is existing goodwill dealt with as an allowable deduction and written off fully at this point against the sale proceeds? TIA. Tom

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By Paul Crowley
10th Feb 2021 17:42

Assuming there is an accountant
Do not bother just show the money received and let him get on with it

It is quicker for him if you do no journals at all

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