CUET Accountancy - Steel and Company purchased a machine from Safe Machine Limited for Rs. 4,80,000 and took over its liabilities of Rs. 3,00,000. As per the purchase agreement, Rs. 50,000 was paid in cash and balance by the issue of 2000 shares of Rs.100 each. What will be the amount of goodwill/capital reserve? | PYQs + Solutions

CUET Accountancy 2025 16 May Shift 1

Company Accounts

Medium

Capital reserve of ₹ 70,000

Goodwill of ₹ 70,000

Capital reserve of ₹ 20,000

Goodwill of ₹ 20,000

✅ Correct Option: 2

Related questions:

24 May Shift 1

Arrange the following in the correct sequence:

(A) Called-up capital

(B) Subscribed capital

(D) Paid-up capital

Choose the correct answer from the options given below:

22 May Shift 1

Which statements are correct about capital reserve:-

(A) It is necessary to create capital reserves out of capital profits, if any.

(B) It cannot be used to issue bonus shares.

(D) It is not shown on the company balance sheet.

Choose the correct answer from the options given below:

27 May Shift 2

Which of the following statements are correct in relation to the issue of share capital for public subscription?

(A) The application money should be at least 5% of the face value of the share.

(B) Calls are to be made as per the provisions of the articles of association.

(D) Calls need not be made on a uniform basis on all shares within the same class.

Choose the correct answer from the options given below:

CUET Accountancy 2025 16 May Shift 1 PYQs