Question

Give the journal entries passed in the books of the purchasing company on acquisition of business when new set of books are opened(vendor book)
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Answer 1

Explanation:

The below mentioned article provides an overview on the Entries in the Books of Purchasing Company.

Purchase of Business:

A company may start an entirely new business or it may start with buying an existing business, either that of a partnership or of a limited company. Frequently, later in its life a company buys businesses. The purchase price or purchase considerate may be discharged in the form of shares debentures or cash. The price paid for the business will naturally depend on the valuation of its assets including goodwill.