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Can someone tell me how purchase consideration comes to 75000rs?
Answers (3)
Best Answer
That is balancing figure, - purchase consideration Because 1.2 lakh asset is revalued at 1lakh, so loss on realisation is 20k And trade payable as nothing is mentioned we will assume full settlement is done, Another method is net worth Total assets taken over minus total liability taken over That his 1Lakh minus 25k = 75k purchase consideration
R Yashwanth Kumar
That is balancing figure, - purchase consideration Because 1.2 lakh asset is revalued at 1lakh, so loss on realisation is 20k And trade payable as nothing is mentioned we will assume full settlement is done, Another method is net worth Total assets taken over minus total liability taken over That his 1Lakh minus 25k = 75k purchase consideration
If net asset method is followed, then that 20k loss accounted as loss on revaluation right?
