Goodwill and overcast /undercast

[jigga]

what is goodwill and how is it treated in accounts ?<BR><BR>what does it mean to overcast and undercast and how is it treated in journal entry ?

[Melanie]

<br><br><< <i>what is goodwill and how is it treated in accounts ?</i> >><br><br><BR><BR>Goodwill is the difference between the amount paid for a company and its the value of its net assets. Usually the goodwill is capitalised (in the Balance Sheet) and may or may not be slowly written off to the profit and loss account through amortisation. This is not tax deductable (like depreciation).<BR><BR>what does it mean to overcast and undercast and how is it treated in journal entry ?</i> >><br><br><BR><BR>Under-/overcasting means that a set of figures has been wrongly added up - either too high (over) or not enough (under). Hope this helps :o)