Question

If vendors are issued fully paid shares of Rs. 1,00,000 in consideration of net assets of Rs. 1,20,000 the balance of Rs. 20,000 will be credited to

(a) Capital Reserve A/C

(b) Profit-Loss A/C

(c) Capital Reserve A/C

(d) of these

Answer 1

If vendors are issued fully paid shares of Rs. 1,00,000 in consideration of net assets of Rs. 1,20,000 the balance of Rs. 20,000 will be credited to Profit-Loss A/C.