Question:medium

Excess value of net assets over purchase consideration at the time of purchase of business is

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To remember this easily:
• Paying More = Buying Reputation (Goodwill - Debit).
• Paying Less = Making a Profit (Capital Reserve - Credit).
Updated On: May 13, 2026
  • Credited to the Capital Reserve.
  • Debited to the Goodwill Account.
  • Credited to the General Reserve Account.
  • Credited to the Vendor's Account.
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The Correct Option is A

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