Question 66 of 85intermediate💡 UnderstandMCQ1 mark

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

Exercise: Test your Understanding-II | Q: 6 | (Chapter: 61)
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Explanation

Option (B) is correct. The provided text states that when the value of debentures issued (purchase consideration) is less than the value of the net assets taken over, the difference is credited to the Capital Reserve account. This excess of net assets over purchase consideration represents a capital profit for the company.