Rambo Ltd. took over Assets of ₹28,00,000 and Liabilities of ₹3,50,000 from Amber Ltd. and issued them 30,000, 12% debenture of ₹100 each at 10% discount. Determine the amount of Goodwill or capital reserve.
Answer & explanation
Correct answer: option 2
The correct answer is Option (2) → Goodwill ₹2,50,000
When a company takes over a business, the purchase consideration is compared with the net assets taken over. If the consideration paid is more than the net assets, the excess is goodwill; if less, it is capital reserve.
Purchase consideration (debentures issued at 10% discount):
= 30,000 × ₹90
= ₹27,00,000
Net assets taken over:
= ₹28,00,000 − ₹3,50,000
= ₹24,50,000
Goodwill:
= ₹27,00,000 − ₹24,50,000
= ₹2,50,000
NCERT (2026-27 edition):
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