If a sole proprietorship is purchased for cash, then?
FINANCIAL
JAMB 1999
If a sole proprietorship is purchased for cash, then?
- A. the purchaser debits his business purchase account with the consideration he pays
- B. all assets and liabilities must be bought
- C. goodwill results where value of assets
- D. the vendor debits his business purchase account with the considerstion he receives
Correct Answer: A. the purchaser debits his business purchase account with the consideration he pays
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