Random Ltd. took over running business of Mature Ltd. comprising of Assets of ₹ 45,00,000 and Liabilities of ₹ 6,40,000 for a purchase consideration of ₹ 36,00,000

Random Ltd. took over running business of Mature Ltd. comprising of Assets of ₹ 45,00,000 and Liabilities of ₹ 6,40,000 for a purchase consideration of ₹ 36,00,000. The amount was settled by bank draft of ₹ 1,50,000 and balance by issuing 12% Preference Shares of ₹ 100 each at 15% premium. Pass entries in the books of Random Ltd.

[Ans.: (a) No. of Preference Shares issued = ₹ 34,50,000 ÷ ₹ 115 = 30,000 shares.]