Question

Nimesh Ltd. took over the following assets and liabilities at an agreed purchase price of Rs 500,000:


Building……………………………. Rs 200,000               Plant and Machinery………………..Rs. 120,000

Debtors…………………………… Rs 150,000                 Furniture and fixture………………. Rs 50,000

Creditors…………………………. Rs 100,000                 Bills Receivable………………………Rs 30,000


Towards this, the company issued 5,000 shares of Rs. 100 each.

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Answer 1

Answer:

building a/c. dr. 200000

plant & machinery a/ c. dr. 120000

debtor a/ c. dr. 150000

furniture & picture a/ c. dr. 50000

bills reveivable a/ c. dr. 30000

good will a/ c. dr. 50000

To credit or a/ c. 100000

To vendor. a/ c. 500000

vendor a/ c. dr. 500000

To share capital a/c. 500000