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
Answers
Answered by
0
Rs. 12,00,000 . How much amount will be debited to Goodwill account
Answered by
0
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.
Similar questions