Practicing Success
ABC Ltd took over assets of Rs 14,00,000 and liabilties of Rs 4,00,000 of TS Ltd. for the purchase consideration of Rs 12,00,000. They paid purchase consideration by the issue of 10% Debentures. How will Goodwill account be treated? |
Credited by ₹2,00,000 Debited by ₹2,00,000 Credited by ₹10,00,000 Debited by ₹10,00,000 |
Debited by ₹2,00,000 |
Goodwill = Purchase consideration - Net Assets |