Question
X Ltd. is absorbed by Y Ltd. Purchase consideration =
₹10,00,000. Assets taken over = ₹12,00,000, Liabilities = ₹3,00,000. What is the goodwill or capital reserve arising?Solution
Net Assets = 12,00,000 – 3,00,000 = 9,00,000. PC = 10,00,000 → excess payment = 1,00,000 → Capital Reserve.
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