When purchasing company pays purchase consideration, it will be debited to
Business purchase account
Incorrect AnswerAssets account
Incorrect AnswerLiquidator of selling company’s account
Correct AnswerExacutor Account
Incorrect AnswerNone of the above
Incorrect AnswerExplanation:
A liquidator, also known as an administrator, gets appointed to take over the company. They'll collect the assets, pay any debts, and distribute the remaining surplus among members based on their rights. This happens when the business is dissolved in compliance with the formalities stated in the company's ordinance.
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By: honey kaundal