Neeraj Ltd. took over business of Ajay Enterprises on 1-04-2020. The details of the agreement regarding the assets and liabilities to be taken over are:
Neeraj Ltd. took over business of Ajay Enterprises on 1-04-2020. The details of the agreement regarding the assets and liabilities to be taken over are:
| Particulars | Book Value (₹) | Agreed Value (₹) |
|
Building Plant and Machinery Stock Trade Receivables Creditors Outstanding Expenses |
20,00,000 12,00,000 4,00,000 5,00,000 2,00,000 50,000 |
35,00,000 8,00,000 4,00,000 4,00,000 3,00,000 1,00,000 |
It was decided to pay for purchase consideration as ₹ 7,00,000 through Cheque and balance by issue of 2,00,000, 9% Debentures of ₹ 20 each at a premium of 25%. Journalise.
[Ans.: Goodwill – ₹ 10,00,000.]
Anurag Pathak Changed status to publish October 7, 2023
