Excess value of net assets over purchase

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Target Exam

CUET

Subject

-- Accountancy Part A

Chapter

Accounting for Shares

Question:

Excess value of net assets over purchase consideration at the time of purchase of business is credited to

Options:

General reserve

Capital reserve

Vendors' account

Debenture redemption reserve

Correct Answer:

Capital reserve

Explanation:

The correct answer is Option (2) → Capital reserve