Practicing Success
Calculate the amount of goodwill from the following information- BC Ltd. took over Assets of ₹6,00,000 and Liabilities of ₹40,000 of XYZ Ltd. at an agreed value of ₹6,30,000. ABC Ltd. issued 10% Debentures of ₹100 each at a discount of 10% to XYZ Ltd. in full satisfaction of the purchase price. |
₹50,000 ₹70,000 ₹65,000 ₹75,000 |
₹70,000 |
The correct answer is option 2- ₹70,000. Net assets = ₹6,00,000 Net assets = Liabilities + purchase consideration |