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Issue for Consideration Other Than Cash

Excess value ...

Question

Excess value of net assets over purchase consideration at the time of purchase of business is credited to:

A

Vendor’s Account

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B

Goodwill Account

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C

Capital reserve

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D

General reserve

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Solution

The correct option is C Capital reserve
Excess value of net assets over purchase consideration at the time of purchase of business is credited to capital reserve.

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Issue for Consideration Other Than Cash

Standard XII Accountancy

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