Blue Prints Ltd., purchased a building worth ₹1,50,000, machinery worth ₹1,40,000, and furniture worth ₹10,000 from XYZ Co. and also took over liabilities of ₹20,000. The purchase consideration is of ₹3,15,000. What will be the amount of goodwill?

₹35,000

The correct answer is option 3- ₹35,000.

Purchase consideration = ₹3,15,000

Net assets = Building + Machinery + Furniture
                  = 1,50,000 + 1,40,000 + 10,000
                  = ₹3,00,000

Liabilities = ₹20,000

Since the purchase consideration is more than the net assets taken over, the difference has been debited to the goodwill account.
Goodwill = (Purchase consideration + Liabilities)  - net assets
              = (3,15,000 + 20,000) - 3,00,000
              = ₹3,35,000 - 3,00,000
              = ₹35,000