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:- Number of shares issued will be ______.
Option 1: 25,000
Option 2: 22,000
Option 3: 36,000
Option 4: None of these.
Correct Answer: 22,000
Solution :
Answer = 22,000
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
30.000
50.000
20.000
To Sundry Creditors A/c
To Vikas Ltd.
To Capital Reserve A/c (Balancing Figure)
20,000
2,50,000
10,000
(Business of Vikas Ltd. purchased)
Vikas Ltd. ...Dr.
To Equity Share Capital A/c
To Bank A/c
2,20,000
30,000
(Purchase consideration paid to Vikas Ltd. by issue of 22,000 Equity Shares of Rs. 10 each and balance by bank draft)
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:
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
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:- 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
Regular exam updates, QnA, Predictors, College Applications & E-books now on your Mobile