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Commerce · Q2080

Accounting

Graduate and Post Graduate · Commerce · question 2080

Q2080

The loss prior to incorporation cannot be treated

A.
by debiting it to Profit & Loss A/c
Answer
B.
by opening a goodwill account with the loss
C.
by debiting it to goodwill account when some price for goodwill is paid at the time of purchasing the business
D.
by debiting it to suspense A/c

Answer: Option A

Solution

Answer: Option A
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