The excess of value of assets over the purchase consideration on acquisition of a business is credited to
Answer Details
When a business is acquired, the value of its assets and liabilities are assessed. The purchase consideration, which is the amount paid to acquire the business, is compared with the total value of assets and liabilities. If the value of the assets is greater than the purchase consideration, the difference is considered as goodwill. Goodwill is an intangible asset that represents the value of the business beyond its physical assets.
Since goodwill is an asset, the excess value of assets over the purchase consideration is credited to the goodwill account. Therefore, the correct answer is goodwill account.