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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 a premium of 20%.

Amount of Net assets are ------

Option 1: Rs 2,20,000

Option 2: Rs 40,000

Option 3: Rs 1,80.000

Option 4: None of these


Team Careers360 15th Jan, 2024
Answer (1)
Team Careers360 22nd Jan, 2024

Correct Answer: Rs 1,80.000


Solution : Answer = Rs 1,80.000

Net Assets = Total Assets - Outsiders liabilities

= 2,20,000-40,000=1,80,000
Hence, the correct option is 3.

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