Accounting journal entry for goodwill
All the individual shareholders in Company A sold all their shares to Mr B and Mr C. The net asset for Company A worth $100,000. The shareholders sold their shares for $300,000 to Mr B and Mr C. The goodwill is $200,000. Since the sale of shares is among individual shareholders, need to records goodwill in Company A's account ?
Comment on smoothy's post
Your comment doesn't help at all. This is a genuine case and NOT simply retype or paste a question from your book or study material. My comment would be NO NEED to record in Company's A account.