alleryStart learning →Shares Rs 80 lakh plus cash Rs 10 lakh paid; transferor capital Rs 120 lakh. Rs 30 lakh gap is?
AGoodwill on merger
BA capital reserve
CProfit for the year
DRevaluation reserve
Answer & Solution
Correct answer: B. A capital reserve
Share capital issued plus extra consideration is 90, against 120, and the difference is transferred to a separately presented capital reserve.
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