Target Exam

CUET

Subject

Accountancy Part A

Chapter

Issue and Redemption of Debentures

Question:

Varun Ltd., purchased building worth Rs.1,50,000, machinery worth Rs.1,40,000 and furniture worth Rs.10,000 from Anuj Ltd., and took over its liabilities of Rs. 20,000 for a purchase consideration of Rs. 3,15,000. Varun Ltd., paid the purchase consideration by issuing 12% debentures of Rs.100 each at a premium of 5%. What will be the amount of goodwill in this case?

Options:

Rs. 35,000

Rs. 15,000

Rs. 30,000

Rs. 2,80,000

Correct Answer:

Rs. 35,000

Explanation:

The correct answer is Option (1) → 

Rs. 35,000