Blue Prints Ltd. purchased a building worth ₹1,50,000, Machinery worth ₹1,40,000, and Furniture worth ₹10,000 from XYZ Co. and took over its liabilities of ₹20,000 for a purchase consideration of ₹3,15,000. Calculate the Goodwill/Capital Reserve to be recorded by Blue Print Ltd.

₹35,000 Goodwill

The correct answer is option 2- ₹35,000 Goodwill.

Total assets taken = 1,50,000 +1,40,000 + 10,000
                              = 3,00,000

Total liabilities taken = 20,000

Purchase consideration = 3,15,000

Assets = liabilities + Purchase consideration
3,00,000 = 20,000 + 3,15,000
3,00,000 = 3,35,000

Not matched means assets side is less so the balancing figure will be goodwill of ₹(3,35,000 - 3,00,000) = 35,000.