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Direction: Choose the correct answer to the following questions from the given alternatives:
Excess value of Purchase consideration over net assets at the time of purchase of business is credited to:
- a)General reserve,
- b)Capital reserve,
- c)Vendors’ account.
- d)Goodwill.
Correct answer is option 'D'. Can you explain this answer?
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Direction: Choose the correct answer to the following questions from t...
- Excess value of Purchase consideration: This refers to the amount paid for a business over and above the net assets acquired.
- Crediting to Goodwill: The excess value is credited to Goodwill in the books of accounts.
- Goodwill: Goodwill represents the reputation, customer base, brand value, and other intangible assets of a business that are not separately identifiable.
- Classification: Goodwill is classified as a Capital Reserve as it is not available for distribution as dividends.
- Capital Reserve: Capital reserves are created out of capital profits and cannot be distributed as dividends to shareholders.
By crediting the excess value to Goodwill, the company recognizes the intangible value it has acquired through the purchase of the business. This helps in presenting a true and fair view of the financial position of the company to its stakeholders.
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Direction: Choose the correct answer to the following questions from the given alternatives:Excess value of Purchase consideration over net assets at the time of purchase of business is credited to:a)General reserve,b)Capital reserve,c)Vendors’ account.d)Goodwill.Correct answer is option 'D'. Can you explain this answer?
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Direction: Choose the correct answer to the following questions from the given alternatives:Excess value of Purchase consideration over net assets at the time of purchase of business is credited to:a)General reserve,b)Capital reserve,c)Vendors’ account.d)Goodwill.Correct answer is option 'D'. Can you explain this answer? for CA Foundation 2024 is part of CA Foundation preparation. The Question and answers have been prepared according to the CA Foundation exam syllabus. Information about Direction: Choose the correct answer to the following questions from the given alternatives:Excess value of Purchase consideration over net assets at the time of purchase of business is credited to:a)General reserve,b)Capital reserve,c)Vendors’ account.d)Goodwill.Correct answer is option 'D'. Can you explain this answer? covers all topics & solutions for CA Foundation 2024 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for Direction: Choose the correct answer to the following questions from the given alternatives:Excess value of Purchase consideration over net assets at the time of purchase of business is credited to:a)General reserve,b)Capital reserve,c)Vendors’ account.d)Goodwill.Correct answer is option 'D'. Can you explain this answer?.
Direction: Choose the correct answer to the following questions from the given alternatives:Excess value of Purchase consideration over net assets at the time of purchase of business is credited to:a)General reserve,b)Capital reserve,c)Vendors’ account.d)Goodwill.Correct answer is option 'D'. Can you explain this answer? for CA Foundation 2024 is part of CA Foundation preparation. The Question and answers have been prepared according to the CA Foundation exam syllabus. Information about Direction: Choose the correct answer to the following questions from the given alternatives:Excess value of Purchase consideration over net assets at the time of purchase of business is credited to:a)General reserve,b)Capital reserve,c)Vendors’ account.d)Goodwill.Correct answer is option 'D'. Can you explain this answer? covers all topics & solutions for CA Foundation 2024 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for Direction: Choose the correct answer to the following questions from the given alternatives:Excess value of Purchase consideration over net assets at the time of purchase of business is credited to:a)General reserve,b)Capital reserve,c)Vendors’ account.d)Goodwill.Correct answer is option 'D'. Can you explain this answer?.
Solutions for Direction: Choose the correct answer to the following questions from the given alternatives:Excess value of Purchase consideration over net assets at the time of purchase of business is credited to:a)General reserve,b)Capital reserve,c)Vendors’ account.d)Goodwill.Correct answer is option 'D'. Can you explain this answer? in English & in Hindi are available as part of our courses for CA Foundation.
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Direction: Choose the correct answer to the following questions from the given alternatives:Excess value of Purchase consideration over net assets at the time of purchase of business is credited to:a)General reserve,b)Capital reserve,c)Vendors’ account.d)Goodwill.Correct answer is option 'D'. Can you explain this answer?, a detailed solution for Direction: Choose the correct answer to the following questions from the given alternatives:Excess value of Purchase consideration over net assets at the time of purchase of business is credited to:a)General reserve,b)Capital reserve,c)Vendors’ account.d)Goodwill.Correct answer is option 'D'. Can you explain this answer? has been provided alongside types of Direction: Choose the correct answer to the following questions from the given alternatives:Excess value of Purchase consideration over net assets at the time of purchase of business is credited to:a)General reserve,b)Capital reserve,c)Vendors’ account.d)Goodwill.Correct answer is option 'D'. Can you explain this answer? theory, EduRev gives you an
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