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?

A Goodwill ₹1,00,000
B Capital Reserve ₹1,00,000
C Goodwill ₹2,00,000
D Capital Reserve ₹1,00,000
E Nil
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