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A Ltd. company took over assets worth ₹ 10,00,000 and liabilities of ₹ 3,00,000 for purchase consideration worth ₹ 12,00,000, how much amount will be debited to goodwill account?
  • a)
    ₹ 10,00,000
  • b)
    ₹ 5,00,000
  • c)
    ₹ 3,00,000
  • d)
    ₹ 12,00,000
Correct answer is option 'B'. Can you explain this answer?
Most Upvoted Answer
A Ltd. company took over assets worth 10,00,000 and liabilities of 3...
Calculation of Goodwill Amount:
- Total Purchase Consideration = Assets acquired - Liabilities assumed
- Total Purchase Consideration = 10,00,000 - 3,00,000
- Total Purchase Consideration = 7,00,000
- Goodwill = Purchase Consideration - Fair Value of Net Assets
- Goodwill = 12,00,000 - 7,00,000
- Goodwill = 5,00,000
Therefore, the amount to be debited to the goodwill account is 5,00,000. Hence, option B is correct.
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Community Answer
A Ltd. company took over assets worth 10,00,000 and liabilities of 3...
Goodwill = 12,00,000 - (10,00,000 - 3,00,000) = ₹ 5,00,000
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A Ltd. company took over assets worth 10,00,000 and liabilities of 3,00,000 for purchase consideration worth 12,00,000, how much amount will be debited to goodwill account?a) 10,00,000b) 5,00,000c) 3,00,000d) 12,00,000Correct answer is option 'B'. Can you explain this answer?
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A Ltd. company took over assets worth 10,00,000 and liabilities of 3,00,000 for purchase consideration worth 12,00,000, how much amount will be debited to goodwill account?a) 10,00,000b) 5,00,000c) 3,00,000d) 12,00,000Correct answer is option 'B'. Can you explain this answer? for Class 12 2024 is part of Class 12 preparation. The Question and answers have been prepared according to the Class 12 exam syllabus. Information about A Ltd. company took over assets worth 10,00,000 and liabilities of 3,00,000 for purchase consideration worth 12,00,000, how much amount will be debited to goodwill account?a) 10,00,000b) 5,00,000c) 3,00,000d) 12,00,000Correct answer is option 'B'. Can you explain this answer? covers all topics & solutions for Class 12 2024 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for A Ltd. company took over assets worth 10,00,000 and liabilities of 3,00,000 for purchase consideration worth 12,00,000, how much amount will be debited to goodwill account?a) 10,00,000b) 5,00,000c) 3,00,000d) 12,00,000Correct answer is option 'B'. Can you explain this answer?.
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