The excess of value of assets over the purchase consideration on acquisition of a business…

The excess of value of assets over the purchase consideration on acquisition of a business is credited to

  • A.
    share capital account
  • B.
    goodwill account
  • C.
    capital reserved account
  • D.
    general reverse account
Correct Answer: Option B
Explanation

In accounting, goodwill is the value of the business that exceeds its assets minus the liabilities.

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