AZ Ltd. acquired 6000 equity shares of BZ Ltd. out of its 8000 equity shares of ₹ 10 each at a price of ₹ 1,50,000 on 01.04.2022. The balance sheet of BZ Ltd. on 01.01.2022 showed a reserve of ₹ 20,000 and profit & l
CS Executive · Corporate and Management Accounting · PYQS · December 2023
AZ Ltd. acquired 6000 equity shares of BZ Ltd. out of its 8000 equity shares of ₹ 10 each at a price of ₹ 1,50,000 on 01.04.2022. The balance sheet of BZ Ltd. on 01.01.2022 showed a reserve of ₹ 20,000 and profit & loss account credit balance of ₹ 50,000. During the year 2022, if BZ Ltd. made a profit of ₹ 40,000 then the goodwill is:
Answer & Explanation:
Correct Answer: Option (A)
Official answer key: (A).
Topics: Corporate Accounting
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