If the value of debentures is less than the value of the net asset tak
| If the value of debentures is less than the value of the net asset taken over, then the difference will be credited to:
A. Goodwill account
B. Capital reserve account
C. General reserve account
D. Debenture account
Right Answer is: B
SOLUTION
• If the value of debentures is less than the value of the net asset taken over, then the difference will be credited to the Capital reserve account.
• Entry
Vendor a/c- Dr.
To Debenture a/c- Cr.
To Capital Reserve a/c- Cr.
(Being the debenture value is less than the asset taken over)
Share
If the value of debentures is less than the value of the net asset tak