WAEC Accounting 2012 Objective — Question 38
Question 38 of 50 from the West African Examinations Council (WAEC) Accounting 2012 Objective paper, with the correct answer and a full explanation.
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The excess of the value of assets over the purchase consideration on acquisition of a business is credited to
- A. share capital account
- B. goodwill account
- C. capital reserve account
- D. general reserve accountCorrect
Explanation
When the value of the business is higher than the purchase consideration, the buyer has got discount which will be credited in the reserve account.
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