Question

A ltd. company took over assets worth Rs. 10,00,000 and liabilities of Rs. 3,00,000 for purchase consideration worth Rs. 12,00,000 . How much amount will be debited to Goodwill account​

Answer 1

Rs. 12,00,000 . How much amount will be debited to Goodwill account

Answer 2

Given:  A ltd. company took over assets worth Rs. 10,00,000 and liabilities of Rs. 3,00,000 for purchase consideration worth Rs. 12,00,000.

To find:   the amount will be debited to the Goodwill account​

Solution:

Assets = 10,00,000

Liabilities= 3,00,000

purchase consideration= 12,00,000

Total value of assets will be purchase considerations+ the amount of assets= 22,00,000

The amount that will be debited to goodwill = 22,00,000-3,00,000= 19,00,000

The amount will be debited to Goodwill account​= 19,00,000.