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

₹15,000

The correct answer is option 2- ₹15,000.

Since the purchase consideration is more than the net assets taken over, the difference has been debited to the goodwill account.

Purchase consideration = ₹3,15,000
Net assets = Building + Machinery + Furniture
                   =1,50,000 + 1,40,000 +10,000
                   = ₹3,00,000

Goodwill = Purchase consideration  - net assets
              = 3,15,000 - 3,00,000
              = ₹15,000