Question

Moon Ltd. took over the following assets and liabilities


Building…………….. Rs 14,00,000               Plant and Machinery………………..Rs. 500,000

Furniture…………… Rs 100,000                   Debtors……………………………….…...Rs 250,000

Creditors…..………... Rs 325,000                 Outstanding Expenses………….……Rs 45,000

Short-term loan…….Rs 80,000

Besides, the company issued sufficient shares of Rs 100 each at a discount of Rs. 10 per share. The company also issued 5,000 shares at a premium of Rs. 10 per share for cash.


Required: Journal entries for purchasing of business.

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Answer 1

Explanation:

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