If the value of debentures is less than the value of the net asset taken over, then the difference will be credited to:
Capital reserve account
The correct answer is Capital reserve account. If the value of debentures is less than the value of the net asset taken over, the difference will be credited to the Capital reserve account. This happens as part of the process of allocating the difference in value between the purchased assets and the amount of debenture issued.
Important Questions from Corporate Accounting
In order to compensate the investors, what kind of debentures are issued at substantial discount and the difference between the nominal value and the issue price is treated as the amount of interest related to the duration of the debentures?
The part of capital which is called-up only on winding up is called ______.
From which of the following, companies cannot buy its own shares?
In order to compensate the investors, what kind of debentures are issued at substantial discount and the difference between the nominal value and the issue price is treated as the amount of interest related to the duration of the debentures?
If the value of debentures is less than the value of the net asset taken over, then the difference will be credited to:
