Rama Ltd. took over following assets and liabilities of Krishna Ltd. on 1s April, 2019:
Rama Ltd. took over following assets and liabilities of Krishna Ltd. on 1s April, 2019:
The purchase consideration of ₹ 60,00,000 was paid by issuing 12% Debentures of ₹ 100 each at a premium of 20%.
Pass the necessary Journal entries for the above in the books of Rama Ltd.
[Ans.: Goodwill – ₹ 2,00,000; No. of Debentures to be issued – 50,000.]
| Land and Building | ₹ 50,00,000 |
| Furniture | ₹ 10,00,000 |
| Stock | ₹ 5,00,000 |
| Creditors | ₹ 7,00,000 |
Anurag Pathak Changed status to publish October 7, 2023
