Question

If Xeno Ltd. acquired net assets of ₹ 20,00,000 against purchase consideration of ₹ 22,50,000, then the balance of ₹ 2,50,000 will be debited to ______.

पर्याय

• Capital Reserve Account.

• Goodwill Account.

• Reserve Capital Account.

• Statement of Profit & Loss.

Answer 1

If Xeno Ltd. acquired net assets of ₹ 20,00,000 against purchase consideration of ₹ 22,50,000, then the balance of ₹ 2,50,000 will be debited to Goodwill Account.

Explanation:

When Purchase Consideration is more than the value of net assets acquired, the difference represents Goodwill.

₹ 22,50,000 − ₹ 20,00,000 = ₹ 2,50,000