Question

X Co. Ltd., took over assets Rs. 3,50,000 and liabilities of Rs. 30,000 of Y Co. for the purchase consideration of Rs. 3,30,000. X Co. Ltd., paid the purchase consideration by issuing debentures of Rs. 100 each at a premium of 10%. Give journal entries.

Answer 1

Answer:

ANSWER IS THIS.

1. Lotus Ltd. took over assets of Rs 2,50,000 and liabilities of Rs.
2. 30,000 of Goneby Company for the purchase consideration of Rs. 3,30,000. Lotus Ltd. paid the purchase consideration by issuing debentures of Rs. 100 each at 10% premium. Give journal entries in the books of Lotus Ltd.Read more on Sarthaks.com - https://www.sarthaks.com/472878/lotus-ltd-took-over-assets-liabilities-000-goneby-company-for-the-purchase-consideration
4. 3,30,000. Lotus Ltd. paid the purchase consideration by issuing debentures of Rs.
5. 100 each at 10% premium.

Answer 2

Answer:

Assets A/c. Dr. ₹ 3,50,000

Goodwill A/C Dr. ₹ 10,000

Liabilities A/C. ₹ 30,000

Business purchases A/C. ₹ 3,30,000

Y Co. A/C. Dr. ₹3,30,000

To Debenture ₹ 3,30,000