Question :

When Net Assets are more than Purchase Consideration. the excess of Net Assets over Purchase Consideration is credited to-----------------

Option 1: Goodwill account 

Option 2: Capital reserve account 

Option 3: Profit and loss account 

Option 4:  Vendor account 

Question :

Exe Ltd. took over assets of  Rs. 7,00,000 and liabilities of  Rs. 60,000 of Wye Ltd. for the purchase consideration of Rs. 6,60,000. Exe Ltd. paid the purchase consideration by issuing 9% Debentures of  Rs. 100 each at 10% premium. 

Goodwill/capital reserve  will be debited/credited by _________.

Option 1: Debited goodwill account by Rs 20,000 

Option 2: Credited capital reserve by Rs 20,000

Option 3: Debited profit and loss account by Rs 20,000

Option 4: Debited goodwill account by Rs 40,000

Question :

An increase in the value of assets at the time of retirement of a partner is

Option 1: credited to Revaluation Account.

Option 2:

debited to Revaluation Account.

Option 3: debited to Profit and Loss Account.

Option 4:

debited to Profit and Loss Appropriation Account.

Question : Prakash Ltd. purchased assets worth Rs.2,20,000 and also took over the liabilities (creditors) of Rs.40,000 of Ajay Ltd. for a purchase consideration of Rs. 1,92,000. Prakash Ltd. paid the purchase consideration by issuing 12% debentures of Rs.100 each at premium of 20%.

Difference between purchase consideration and Net Assets are debited/credited to

Option 1: Debited to goodwill account by Rs 12,000

Option 2: Credited to capital reserve account by Rs 12,000

Option 3: Debited to profit and loss account Rs 12,000

Option 4: Credited to General reserve Rs 12000

Question : If vendors are issued fully paid shares of Rs.5,00,000 in consideration of net assets Rs.3,00,000. Then the balance of Rs.2,00,000 will be:

Option 1: Debited of Statement of Profit and Loss

Option 2: Debited to Goodwill Account

Option 3: Credited to Capital Reserve Account

Option 4: Credited to Securities Premium Account