Business Studies, asked by Kristin5240, 10 months ago

Loss suffered from the date of acquisition of business to the date of incorporation should be debited to

Answers

Answered by kaushikameera9
3

Answer:

profit earned after incorporation is revenue profit which is available for divide and profit aprea period and the cost period however divided separately because the Priya period profit and loss hands always credited and charged from capital reserve AC

Answered by steffiaspinno
0

Loss suffered from the date of acquisition of a business to the date of incorporation should be debited to the Goodwill account.

In accounting, goodwill is classified as an intangible asset. When a firm wanting to purchase another company is ready to pay a price premium beyond the fair market worth of the company's net assets, the idea of goodwill comes into play.

A firm's strong reputation, a stable (loyal) customer or client base, brand identification and recognition, an unusually competent workforce, and proprietary technology are examples of aspects or factors that a company pays more for or that are portrayed as goodwill. These are, in reality, important assets of a business. They are not, however, actual (physical) assets, therefore their worth cannot be exactly evaluated.

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