Goodwill accounting sole trader

Write off goodwill or preserve it

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A guy buys a grocers shop stock  £2000 and goodwill  £50000.he wants to trade for 5 years and then sell the goodwill n business for  £50000. He just wants his money back. I would debit goodwill and credit his capital account. I would keep the goodwill figure in the accounts to cessation and disposal.  I understand the buyer will see what the seller paid for the business. Is this usual procedure.  

 

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blue sheep
By NH
15th Jan 2018 05:36

What did his accountant advise?

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By Ruddles
15th Jan 2018 09:16

After 50 years as an accountant, you should not have to ask that question.

Stop wasting folks' time.

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