If purchase consideration is greater than net assets acquired, the excess represents payment for intangible value (goodwill) and is debited to Goodwill A/c. If purchase consideration is less than net assets, the difference is credited to Capital Reserve A/c.
When the purchase consideration is more than net assets taken over, the difference will be debited to
CUET UG 2022 — Accountancy Company Accounts
2022mcqeasy
When the purchase consideration is more than net assets taken over, the difference will be debited to
Official previous-year question
Held on 16 Jul 2022 · Verified 13 Jul 2026.
Options
- A
Security Premium Reserve A/c
- B
Capital Reserve A/c
- C
Goodwill A/c
- D
Discount on issue of Debentures A/c
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