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Issue for Consideration Other Than Cash

If purchase c...

Question

If purchase consideration given is more than the net assets acquired, then the difference is debited to:

A

Goodwill account

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B

Bank account

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C

General Reserve

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D

Capital reserve

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Solution

The correct option is A Goodwill account
If purchase consideration given is more than the net assets acquired, then the difference is debited to goodwill account.

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