Evershine Ltd. Took over assets of Rs.1000000 and creditors of Rs.100000 from B Ltd. and issued 6% debentures of Rs.100 each at premium of 25% as purchase consideration. Pass the necessary jorunal entries of A Ltd.
Answers
Answered by
0
Answer:yes
Explanation: maybe this is how it is done
Total debentures exchanged for consideration= 1000000/100= 10000 debentures
Acquisition account 1000000₹
Allotment of debenture account1000000₹
(Allotted 6% debentures to acquire assets worth 1000000₹)
Allotment of debentures 1000000₹
To 6% debentures account 750000₹
To premium account (10000*25) 250000₹
I don’t think anyone will buy creditors/payables because after consolidation, you have to pay twice the price i.e. cost to acquire payables and cost to clear payables.
Similar questions