Gunjan Limited purchased a running business from Vrindavan Limited for a sum of ₹ 25,00,000, payable ₹ 4,00,000 by cheque and for the balance issued 8% Debentures of ₹ 100 each at 5% premium
Gunjan Limited purchased a running business from Vrindavan Limited for a sum of ₹ 25,00,000, payable ₹ 4,00,000 by cheque and for the balance issued 8% Debentures of ₹ 100 each at 5% premium.
The assets and liabilities consisted of the following:
Record necessary journal entries in the books of Gunjan Limited.
[Ans. Capital Reserve ₹ 3,20,000; N
| Book Value (₹) | Agreed Value (₹) | |
| Land and Buildings | 5,00,000 | 9,00,000 |
| Plant and Machinery | 10,00,000 | 8,00,000 |
| Patents | 1,00,000 | 40% |
| Sundry Debtors | 8,00,000 | Subject to 5% Provision |
| Stock | 6,00,000 | 4,40,000 |
| Sundry Creditors | 1,20,000 | 1,20,000 |
Anurag Pathak Answered question November 16, 2024
