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Commerce · Q1809

Accounting

Graduate and Post Graduate · Commerce · question 1809

Q1809

If a machinery of Rs. 7,20,000 is purchased against the issue of fully paid shares of Rs. 8,00,000, then balance of Rs. 80,000 is debited to

A.
Goodwill account
B.
Capital reserve account
C.
Profit and Loss account
D.
Discount on the issue of shares account
Answer

Answer: Option D

Solution

Answer: Option D
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