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Aarav Ltd. acquired… (Class 12 Accountancy SQP 2026-27, Q12)

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AccountancyCBSE Class 12 · Sample paper, session 2026-27 · 1 mark · MCQ

CBSE Class 12 Accountancy sample paper 2026-27: question 12

From the official CBSE sample question paper for 2026-27, section A, question 12, for 1 mark. Try it first; the hints and our step-by-step solution are below.

Q12 · 1 mark · MCQAccounting for Share Capital

Aarav Ltd. acquired the business of Mehul Ltd. as per the following agreement:
• Assets of ₹ 20,00,000 were taken over at ₹18,00,000
• Liabilities of ₹ 2,80,000 were taken over at ₹2,50,000
The purchase consideration was discharged by:
• Issuing 12,000 equity shares of ₹100 each at a premium of 25%
• ₹1,00,000 through bank draft.
The amount of Goodwill/ Capital Reserve arising on acquisition will be:

  1. (A)Goodwill ₹50,000
  2. (B)Capital Reserve ₹50,000
  3. (C)Goodwill ₹1,50,000
  4. (D)Capital Reserve ₹1,50,000

Source: official sample paper from cbseacademic.nic.in (PDF). See it in the full Sample paper 2026-27.

Hints

Open one hint at a time and try again before the next.

Hint 1

Use the values at which assets and liabilities were taken over.

Hint 2

Shares at 25% premium are worth ₹ 125 each.

Step-by-step solution

Each step shows the marks it earns, as an examiner would award them. Checked by an independent re-solve from the question paper.

  1. Net assets at agreed values = ₹ 18,00,000 − ₹ 2,50,000 = ₹ 15,50,000. Consideration = 12,000 × ₹ 125 + ₹ 1,00,000 = ₹ 16,00,000.

  2. Consideration exceeds net assets by ₹ 50,000: Goodwill. Option (A).

    1 mark

Answer: (A) Goodwill ₹50,000

Where the marks are

  • Consideration ₹ 16,00,000 vs net assets ₹ 15,50,000 (1 mark)

Revise the chapter

Practise this chapterBoard-style questions from Accounting for Share Capital, one at a time, marked against the answer key and marking points.Back to the full paperSample paper 2026-27: every question, by section.

The question is transcribed from the official paper; figures are described in words. The solution, hints and chapter tag are ours. Spotted an error? Write tosupport@questionbuddy.in.