The value of net assets less purchase price in case of purchase of business against shares is adjusted…
The excess of net assets acquired over the purchase price is credited to capital reserve. Goodwill arises in the reverse case, when purchase consideration exceeds the value…
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The value of net assets less purchase price in case of purchase of business against shares is adjusted in :
Answer and explanation
Correct answer A
The excess of net assets acquired over the purchase price is credited to capital reserve. Goodwill arises in the reverse case, when purchase consideration exceeds the value of net assets acquired.
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Jammu & Kashmir and Ladakh SET (JKSET/LASET)