Question

Evershine Ltd. took over assets of Rs.1000000 and creditors of Rs.100000 from B Ltd. & issued 6% debentures of Rs.100 each at premium of 25% as purchase consideration. Pass necessary journal entries in the books of A Ltd.​

Answer 1

Answer:

Explanation:

Sundry assets A/C Dr. 1500000

Goodwill A/C (balancing fig.) Dr. 368500

To Sundry liabilities A/C. 500000

to P Ltd. A/C. 1368500

P Ltd. A/C. DR. 1368500

To B/R. A/C. 25500

To E. Share A/C. 1074400

To S. Premium A/C. 268600