Question

Answer: 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?​ solved

Answer 1

Answer:

sundry assets a/c. Dr.... 1350000

goodwill a/c. Dr.... 50000

To sundry liabilities. 200000

To utsav ltd. 1200000

utsav ltd. a/c. Dr..... 1200000

to cash. 200000

to 8% preference share. 800000

to security premium reserve. 200000