alleryStart learning →A transferee pays Rs 8,00,000 for net assets of Rs 9,25,000 in a purchase. Capital Reserve?
ARs 1,00,000
BRs 1,50,000
CRs 1,25,000
DRs 9,25,000
Answer & Solution
Correct answer: C. Rs 1,25,000
Net assets of 9,25,000 exceed the 8,00,000 paid by 1,25,000, and that difference is credited to Capital Reserve.
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