Cambridge AS & A Level Accounting
3.3.1Business acquisition and merger
Business acquisition and merger in Cambridge AS & A Level Accounting: what the syllabus expects you to know, the learning objectives and how to practise.
Subtopic89 practice questions4 lessons
Learning objectives
What the syllabus expects you to be able to do.
- 3.3.1.1Explain the nature and purpose of the merger of businesses to form a new entity.
- 3.3.1.2Prepare journal entries and ledger entries for the merger of sole traders into a partnership or company, a sole trader with an existing partnership, and the acquisition of a sole trader or partnership by a company.
- 3.3.1.3Calculate goodwill on acquisition, prepare statements of profit or loss and financial position for the new entity and evaluate the advantages and disadvantages.
Lessons
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Business purchase: consideration and goodwill
45 min
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Closing the books of a business taken over
45 min
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Mergers and statements of financial position after a purchase
45 min
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Recording a business purchase in the purchaser's books
45 min
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Sample question
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