Purchase of Business for £1

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

Comments
There are 2 comments. Login or register to view them.

Negative goodwill

Ruddles |
Ruddles's picture

You refer to a shareholders

Carlos_Fandango |