When the purchasing company bears the liquidation expenses it will debit the expenses to ........

Accountancy (Phase -I & II) Others

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When the purchasing company bears the liquidation expenses, it will debit the expenses to

Vendor Company‘s Account

Bank Account

Goodwill Account

None of the above

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Explanation:

Goodwill is an intangible asset that is associated with the purchase of one company by another. Specifically, goodwill is the portion of the purchase price that is higher than the sum of the net fair value of all of the assets purchased in the acquisition and the liabilities assumed in the process. The value of a company’s brand name, solid customer base, good customer relations, good employee relations, and proprietary technology represent some reasons why goodwill exists.