Question

The company B takes over the business of company A the value agreed for various assets is goodwill Rs 22000 land and buildings rs25000 plant and machinery rs 24000 Stock rs 13000 debtors rs 8000 B company does not take over cash but agree to assume the liability of sundry creditors at rs 5000 calculated purchase consideration

Answer 1

Answer:

Explanation:

The company B takes over the business of

company A. The value agreed for various

assets is Goodwill Rs. 22,000, Land and

Building Rs. 25,000, Plant and Machinery

Rs. 24,000, Stock Rs. 13,000, Debtors

Rs. 8,000. B Company does not take over

cash but agree to assume the liability of

sundry creditors at Rs. 5,000.

Calculate purchase consideration under net