Question

Data Ltd. purchased assets of the book value ₹ 4,00,000 and took over the liability of ₹ 50,000 from Sona Ltd. It was agreed that purchase consideration will be settled by cheque of ₹ 1,00,000 and by issue of ₹ 2,00,000. 10% debentures at premium of 25%. The Amount of goodwill/capital reserve will be

• A. ₹ 30,000 Capital reserve
• B. ₹ 30,000 goodwill
• C. ₹ 50,000 Capital reserve
• D. There will not be any Goodwill or Capital Reserve

Answer 1

Answer: (D)

There will not be any Goodwill or Capital Reserve

Answer 2

The correct option is (D) :There will not be any Goodwill or Capital Reserve.