Question

Green Ltd. purchased the assets of Strong Ltd. for 40,00,000 and took over liabilities of 7700
agreed value of 32,40,000. Payment was made by issuing 10% Debentures of 100 each at a
10%. Pass the necessary Journal entries in the books of Green Ltd.
fan.ir Sundry Assets A/cby40,00,000. Cr. Sundry Liabilities Alchy
100 each at

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Answer 1

Explanation:

1st entry is-

Dr. Sundry assets by 40,00,000

cr. liabilities by 7700

cr. vendor by 32,40,000

cr. capital reserve by 7,52,300