When a purchasing company pays purchase consideration, it will be debited to

When a company purchases another business, the purchase consideration payable is first recorded through the Business Purchase Account.

Entry when business is purchased

Business Purchase A/c Dr.
  To Liquidator of Selling Company A/c

This means the purchasing company debits the Business Purchase Account to record the cost of acquiring the business.

Option Analysis

A. Liquidator of selling company's account → Credited, not debited ❌

B. Business purchase account → Debited by purchasing company ✅

C. Assets account → Debited later when assets are taken over ❌

D. None of the above → ❌

✅ Correct Answer: B. Business Purchase Account.