Question

Sunrise Ltd. Took over business of Moonlight Ltd. and paid for it by issue of 30,000 equity shares of Rs. 100 each at a par along with 6% Preference Shares of 1,00,00,000 at a premium of 5% and a cheque of Rs. 8,00,000. What was the total agreed purchase consideration payable to Moonlight Ltd.
(a) Rs. 1,05,00,000
(b) Rs. 1,43,00,000
(c) Rs. 1,40,00,000
(d) Rs. 1,35,00,000 And Please give me the correct Explaination of this Question (-_-)

Answer 1

Let's do journal entry

Moonlight Ltd A/c 1,43,00,000

To bank A/c 8,00,000

To equity share capital A/c. 30,00,000

To prefence share capitalA/c 1,00,00,000 To S.P.R A/c 5,00,000

• Calculation of S.P.R

→ Prefence share capital = 1,00,00,000

→ SPR = 1,00,00,000 × 5/100 = 5,00,000

So, the correct option is (b)

Answer 2

Option B

Rs.14300000

This is your correct answer