Question

If Vendors are issued debentures of ₹ 4,40,000 in consideration of assets of ₹ 5,00,000 and liabilities of ₹ 1,00,000, the balance of ₹ 40,000 will be debited to ______.

Options

• General Reserve Account

• Capital Reserve Account

• Goodwill Account

• Statement of Profit & Loss

Answer 1

If Vendors are issued debentures of ₹ 4,40,000 in consideration of assets of ₹ 5,00,000 and liabilities of ₹ 1,00,000, the balance of ₹ 40,000 will be debited to goodwill account.