Purchase of Business for £1

Posted by Ned PM | on Sun, 20/05/2012 - 07:51 882 2 comments | report

A business has been bought for £1. However the debt that was taken on was approx £20,000 and the fair value of the assets of the company is approx £80,000. My question is where does the credit for £60,000 get posted - is it a shareholders loan or revaluation reserve ?

Thanks

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Negative goodwill

Ruddles | Sun, 20/05/2012 - 08:35

You refer to a shareholders

Carlos_Fandango | Mon, 21/05/2012 - 13:48