while calculating purchase price the following values of assets are considered answer
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Ans :- Under this method, purchase consideration is calculated by adding up the values of various assets taken over by the purchasing company and then deducting there from the values of various liabilities taken over by the purchasing company.
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While calculating the price, fixed values are considered.
- Both assets and liabilities are taken into consideration under this method.
- They are applied to the total of valuable assets in this form of purchasing consideration, and liabilities are afterwards deducted from the total of assets.
- The balance is called reimbursement for goodwill.
- It occurs if any additional sum is paid against sales value over and above the net assets.
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