Question :
Pranjal Ltd. purchased a running business from Vaibhav Ltd. for a sum of Rs. 2,50,000 payable as Rs. 2,30,000 in fully paid equity shares of Rs. 10 each and balance by bills payable. The assets and liabilities consisted of the following:
Plant and Machinery Rs. 90,000; Building Rs. 90,000; Sundry Debtors Rs. 30,000; Stock Rs. 50,000; Cash Rs. 20,000; Sundry Creditors Rs. 20,000.
Question:- How many shares will be issued by the company?
Option 1: 23,000 equity shares
Option 2: 20,000 equity shares
Option 3: 25,000 equity shares
Option 4: None of these
Correct Answer: 23,000 equity shares
Solution : Answer = 23,000 equity shares
JOURNAL
|
Date |
Particulars |
L.F. |
Dr.( Rs.) |
Cr.( Rs.) |
|
Plant and Machinery A/c ...Dr. Building A/c ...Dr. Sundry Debtors A/c ...Dr. Stock A/c ...Dr. Cash A/c ...Dr. |
90.000 90.000 30.000 50.000 20.000 |
|||
|
To Sundry Creditors A/c To Vaibhav Ltd. To Capital Reserve A/c (Balancing Figure) |
20,000
2,50,000
10,000
(Business of Vikas Ltd. purchased)
Vikas Ltd. ...Dr.
2,50,000
To Equity Share Capital A/c
To Bills Payable A/c
2,30,000
20,000
(Purchase consideration paid to Vikas Ltd. by issue of 23,000 Equity Shares of Rs. 10 each and balance by bills payable)
Number of shares = Purchase consideration/Issue Price = Rs.2,30,000/Rs.10 = 23,000.
Hence, the correct option is 1.
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