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Standard XII

Accountancy

Proprietary Ratio

ABC Ltd was i...

Question

ABC Ltd was incorporated with an authorised Share Capital of $R s . 1, 00, 000$ equity shares of $R s . 10$ each. The Board of Directors of the company decided to allot $10, 000$ shares credited as fully paid to the promoters of the company for their services. Which account should be debited in the books of ABC Ltd.?

Promotes' Account

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Services Account

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Goodwill Account

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Share Capital Account

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Solution

The correct option is D Goodwill Account
Goodwill A/c is to be debited as shares are credited as fully paid to the promoters of the company.

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The correct option is D Goodwill AccountGoodwill A/c is to be debited as shares are credited as fully paid to the promoters of the company.

The correct option is D Goodwill Account
Goodwill A/c is to be debited as shares are credited as fully paid to the promoters of the company.