Practice question
Question
A Ltd. company took over assets worth ₹ 10,00,000 and liabilities of ₹ 3,00,000 for purchase consideration worth ₹ 12,00,000, how much amount will be debited to goodwill account?
Explanation
₹ 5,00,000 company accounts correct; share issue forfeiture pro-rata per Companies Act.
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