Question

 A ltd company took over assets worth Rs. 10,00,000 and liabilities of Rs. 3,00,000 for a purchase consideration of Rs. 12,00,000. Out of which Rs. 2,00,000 bill payable accepted and remaining was paid by issuing shares at a premium of 25% on face value Rs. 100. How much amount will be credited to Securities Premium A/c​

Answer 1

Answer:

2,00,000

Explanation:

Assets - 10,00,000

(-) liabilities - 3,00,000

value of the company = 7,00,000

Calculation Good will or bar gain on purchase

Purchase consideration 12,00,000

(-) value of the company 7,00,000

Good will - 5,00,000

Securities Premium

Purchase consideration 12,00,000

(-) Bills payable 2,00,000

Shares value 10,00,000

25% on face value of share

= 10,00,000 x 25/125

= 2,00,000