When purchasing company pays purchase consideration, it will be debited to

Related MCQs

• In case of inter-company holdings, the purchasing company, at the time of payment of the purchase consideration, surrenders the shares in the vendor company by crediting:
• While preparing the books of the transferee company in purchase method, the difference between purchase consideration and share capital of the transferor company should be adjusted in -------------
• The excess of purchase consideration over net assets of the transferor company acquired by the transferee company should be recognized as -------- in purchase method
• In purchase method, the excess of net asset of the transferor company acquired by the transferee company over the purchase consideration should be recognized as ------------
• When the purchasing company does not take over a particular liability and the vendor company pays that liability, it will debit it to
• When debentures are issued as a consideration of purchase of assets …………. Is debited.
• Under purchase method, the excess of net assets over purchase consideration is ……….
• Which of the following a/c is debited when statutory reserve of the transferor company is taken over by the transferee company?
• The share capital, to the extent already held by the purchasing company, is closed by the vendor company by crediting it to:
• ……………….is the amount payable by the purchasing companies to the vendor company for taking over the business of vendor company.