CUET Preparation Today
| If vendors are issued fully paid shares of Rs1,25,000 in consideration of net assets of 1,50,000, the balance of Rs25,000 will be credited to which account? |
P and L A/c Goodwill A/c Securities Premium A/c Capital Reserve |
| Capital Reserve |
| Capital Reserve = Net Assets - Purchase consideration = Rs.1,50,000 - Rs.1,25,000 = Rs.25,000 = Capital Reserve. The journal entry will be: Assets A/c Dr. 1,50,000 --- To Vendor --- 1,25,000 To Capital Reserve A/c --- 25,000 Hence, the correct option is D |
