If Vendors are issued debentures of Rs.4,40,000 in consideration of assets of Rs. 5,00,000 and liabilities of Rs. 1,00,000, the balance of Rs.40,000 will be debited to:
A. General Reserve Account
B. Capital Reserve Account
C. Goodwill Account
D. Statement of Profit & Loss
Answer:C
If Vendors are issued debentures of Rs.4,40,000 in consideration of assets of Rs. 5,00,000 and liabilities of Rs. 1,00,000, the balance of Rs.40,000 will be debited to:
A. General Reserve Account B. Capital Reserve Account C. Goodwill Account D. Statement of Profit & Loss