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 __________.
Option 1: Capital reserve, credited, Rs. 25,000
Option 2: Goodwill, debited, Rs. 75,000
Option 3: Rs. 4,75,000 and Securities Premium, credited, Rs. 25,000
Option 4: Rs. 5,00,000 debentures and Securities Premium credited Rs. 25,000
Correct Answer: Rs. 4,75,000 and Securities Premium, credited, Rs. 25,000
Solution : Answer = Rs. 4,75,000 and Securities Premium, credited, Rs. 25,000
Purchase consideration = Rs.8,00,000 - Rs.1,00,000 = Rs. 7,00,000 paid, Rs. 2,00,000 in cash and paid Rs. 4,75,000 debentures at a premium of Rs. 25,000. Hence, the correct option is 3.
Question :
Y Ltd., purchased plant and machinery for Rs.2,00,000 from Z Ltd. 20% of the amount was paid by Y Ltd. by accepting a bill of exchange in favour of Z Ltd. and the balance was paid by issuing 6% debentures of Rs. 1,000 each at a
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
Y Ltd., purchased plant and machinery for Rs.2,00,000 from Z Ltd. 20% of the amount was paid by Y Ltd. by accepting a bill of exchange in favour of Z Ltd. and the balance was paid by issuing 6% debentures of Rs. 1,000 each at a premium of
Question : Mk Ltd. purchased machinery for Rs.3,50,000 from K Ltd. on 28.2.2018. Rs.50,000 were paid to S K Ltd. immediately and the balance was paid by issue of 10% debentures of Rs.3,10,000 in Mk Ltd. Then the balance of Rs.10,000 will be transferred to
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