Akansha LTD. Purchased the buissness of utsav LTD. On 1.4.2016 for a sum of 12,00,000 Rs the assets of utsav LTD. were 13,50,000 Rs and liabilities 2,00,000 RS. 2,00,000 RS. was paid in cash on 5.4.2016 and for the balance , 8% preference shares of 100Rs each were issued on 10.4.2016 at a premium of 25% . Pass necessary journal entries in the books at akansha LTD. For the above transaction?
Answers
Answered by
4
Answer:
assets a/c. -Dr 13,50,000
goodwill a/c. -Dr. 50,000
To liability A/c. 2,00,000
To vendor A/c. 12,00,000
( being business purchase)
vendor A/c. -Dr. 2,00,000
To cash A/c. 2,00,000
(being cash paid to vendor)
vendor A/c. 10,00,000
To share capital.
8,00,000(8000*100)
To security premium 2,00,000(8000*25)
(Being issue at premium)
Thank you ☺
Similar questions