Question :

Rajan Ltd. purchased a running business from Vikas Ltd. for a sum of  Rs. 2,50,000 payable as  Rs. 2,20,000 in fully paid equity shares of  Rs. 10 each and balance by a bank draft. 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

On the basis of the above question choose the correct option to the following cases

Question:- Amount that will be credited to capital Reserve will be

Option 1: Rs.30,000

Option 2: Rs.10,000

Option 3: Rs.25,000

Option 4: None of these

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 

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 

Question :

Rajan Ltd. purchased a running business from Vikas Ltd. for a sum of Rs. 2,50,000 payable as  Rs. 2,20,000 in fully paid equity shares of  Rs. 10 each and balance by a bank draft. 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:- The difference between net assets and purchase consideration is transferred to _______.

Option 1: Goodwill Rs. 10,000  

Option 2: Capital Reserve Rs. 10,000

Option 3: Securities premium Rs. 10,000

Option 4: Vendor Co. Rs. 10,000

Question :

Rajan Ltd. purchased a running business from Vikas Ltd. for a sum of Rs. 2,50,000 payable as  Rs. 2,20,000 in fully paid equity shares of  Rs. 10 each and balance by a bank draft. 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:- The difference between net assets and purchase consideration is transferred to _______.

Option 1: Goodwill Rs. 10,000  

Option 2: Capital Reserve Rs. 10,000

Option 3: Securities premium Rs. 10,000

Option 4: Vendor Co. Rs. 10,000