Question : If vendors are issued fully paid shares of Rs.5,00,000 in consideration of net assets Rs.3,00,000. Then the balance of Rs.2,00,000 will be:
Option 1: Debited of Statement of Profit and Loss
Option 2: Debited to Goodwill Account
Option 3: Credited to Capital Reserve Account
Option 4: Credited to Securities Premium Account
Correct Answer: Debited to Goodwill Account
Solution : Goodwill = Purchase Consideration - Net Assets = Rs.5,00,000 - Rs.3,00,000 = Rs.2,00,000. Goodwill Account will be debited with Rs.2,00,000. Hence, the correct option is 2.
Question :
Citizen Ltd. issued 10,000, 6% Debentures of Rs. 100 each at a discount of 10% redeemable at 10% premium. It has Securities Premium Reserve of Rs. 1,75,000. Loss on Issue of Debentures Rs. 2,00,000 will be written off by
Exe Ltd. took over assets of Rs. 7,00,000 and liabilities of Rs. 60,000 of Wye Ltd. for the purchase consideration of Rs. 6,60,000. Exe Ltd. paid the purchase consideration by issuing 9% Debentures of Rs. 100 each at 10%
Question : Y Ltd. purchased assets of Rs. 8,00,000 and liabilities of Rs. 1.00,000 from X Ltd. on 1.4.2018. Rs. 2,00,000 were paid immediately and the balance was paid by issue of Rs. 4,75,000, 10% debentures in Y Ltd __________ account will be _______ with __________.
Question : If a company issues a fully paid share of Rs.1,25,000 in consideration of net assets of Rs.1,50,000 to a vendor. The Balance of Rs.25,000 will be credited to:
Question : Prakash Ltd. purchased assets worth Rs.2,20,000 and also took over the liabilities (creditors) of Rs.40,000 of Ajay Ltd. for a purchase consideration of Rs. 1,92,000. Prakash Ltd. paid the purchase consideration by issuing 12% debentures of Rs.100 each at premium of
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