Question

If the amount of debentures issued is more than the amount of the net assets taken over by a company, the difference will be treated as ______.

Options

• Capital Reserve 

• Goodwill

• Purchase Consideration

• General Reserve

Answer 1

If the amount of debentures issued is more than the amount of the net assets taken over by a company, the difference will be treated as goodwill.

Explanation:

Any extra amount paid through the issue of debentures over and above the net assets is called goodwill.