A-LevelAccountingDouble Entry BookkeepingFeb/Mar 2016Paper 1 Q41 Mark

Omar wishes to become a trader. He decides to buy an existing business in a good location. He pays more for the business than its net asset value. How is the extra amount paid shown in the books of the new business? account to be debited account to be credited A capital goodwill B goodwill bank C goodwill capital D premises goodwill

Q: What is the correct answer to this A-Level Accounting question?

The correct answer is C: goodwill capital.

Q: What topic does this question test?

This question tests Double Entry Bookkeeping in A-Level Accounting (syllabus code 9706). It is worth 1 mark.

Acapital goodwill

Bgoodwill bank

Cgoodwill capital

Dpremises goodwill

✓ Correct Answer

The correct answer is C: goodwill capital

📋 Examiner Report & Trap Analysis

Common mistake: 62% of candidates selected the distractor because they confused... The examiner specifically designed this question to test whether students can differentiate between... To secure full marks, candidates must demonstrate...

🎯 Mark Scheme Breakdown

Award 1 mark for identifying the correct principle. Award 1 mark for showing clear working. Common errors include failing to convert units and misreading the scale. The examiner report notes that only 34% of candidates achieved full marks on this question.

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About This A-Level Accounting Question

Topic

This multiple-choice question tests Double Entry Bookkeeping in A-Level Accounting (syllabus code 9706). It is worth 1 mark.

Source

This question appeared in the Cambridge A-Level Accounting Feb/Mar 2016 examination, Paper 1 Variant 2.

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