Question

When the purchasing company bears the liquidation expenses it will debit the expenses to:_______

a. Vendor Company’s Account
b. Bank Account
c. Goodwill Account
d. Debtors Account

Answer 1

c. Goodwill Account

Step-by-step explanation:

In the case when the company is in liquidation and the purchasing company paid the liquidation expense as it is beared by them so here the expenses would be debited to the goodwill account

Therefore as per the given situation, the option c is correct as the liquidation expenses should be debited to the goodwill

So the rest of the options are wrong