Question

27) Neeraj Ltd. took over business of Ajay enterprisesthe agreement regarding the assets and liabilities to beParticularsBook ValueBuilding20,00,000Plant and Machinery 12,00,000Stock4,00,000Trade receivables5,00,000Creditors2,00,000Outstanding Expenses 50,000It was decided to pay for purchase consideraCheque and balance by issue of 2,00,000, 9% Debepremium of 25%. Journalize.​

Answer 1

Explanation:

hope this will help you

Answer 2

Answer:

Journal Entry- 1

Buildings A/c -------------------------------Dr   20,00,000  

Plant and machinery A/c----------------Dr          12,00,000  

Stock in trade A/c--------------------------Dr     4,00,000  

Trade receivable A/c----------------------Dr      5,00,000  

               To Creditor A/c                                          2,00,000  

               To Outstanding Expenses A/c                    50,000  

               To Ajay A/c                                                   38,50,000  

(Being assets and liabilities taken over by Neeraj Ltd)    

Journal Entry- 2

Ajay A/c------------------------------------Dr.             38,50,000  

               To 9% Debentures A/c (10 x 200000)                  20,00,000  

               To Security premium A/c (10 x 200000 x 25%)    5,00,000  

               To Bank A/c                                                            13,50,000  

(Being Purchase consideration paid partly by debenture and through cheque)    

Explanation:

For the purpose of debentures par value is considered Rs. 10