Question

Apr. 30 Purchased the running business of Anil for 3,00,000 paid by proprietor with the
following assets and liabilities:
Stock 2,00,000; Debtors - 1,10,000; Machinery -40,000; Creditors -30,000.​

Answer 1

Total Assets - Liability(debt) = 3,20,000(networth)
Consideration for purchase of business= ₹3,00,000
Excess of net asset value over purchase consideration = ₹20,000 i.e Capital Resero

Answer 2

Explanation:

parchese the running buseness of anil for 300000 paid