Question :
When Purchase Consideration is more than Net Assets. the excess of Purchase Consideration over Net Assets is debited to --------------------
Option 1: Goodwill account
Option 2: Capital reserve account
Option 3: Profit and loss account
Option 4: Vendor account

Question

Question :

When Purchase Consideration is more than Net Assets. the excess of Purchase Consideration over Net Assets is debited to --------------------

Option 1: Goodwill account

Option 2: Capital reserve account

Option 3: Profit and loss account

Option 4: Vendor account

Team Careers360 · Accepted Answer

Correct Answer: Goodwill account

Solution : Answer = Goodwill account

When the purchase consideration exceeds the net assets acquired, the excess amount is typically debited to the Goodwill account. This represents the premium paid for intangible assets such as brand value, customer relationships, or favourable market positioning. It reflects the value of the business beyond its tangible assets.
Hence, the correct option is 1.

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Question : When Purchase Consideration is more than Net Assets. the excess of Purchase Consideration over Net Assets is debited to --------------------Option 1: Goodwill account Option 2: Capital reserve account Option 3: Profit and loss account Option 4: Vendor account

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Question :
When Purchase Consideration is more than Net Assets. the excess of Purchase Consideration over Net Assets is debited to --------------------
Option 1: Goodwill account
Option 2: Capital reserve account
Option 3: Profit and loss account
Option 4: Vendor account

Question :
When Net Assets are more than Purchase Consideration. the excess of Net Assets over Purchase Consideration is credited to-----------------

Question :
Exe Ltd. took over assets of Rs. 7,00,000 and liabilities of Rs. 60,000 of Wye Ltd. for the purchase consideration of Rs. 6,60,000. Exe Ltd. paid the purchase consideration by issuing 9% Debentures of Rs. 100 each at 10%

Question :
An increase in the value of assets at the time of retirement of a partner is