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X Ltd. Acquires the business of Y Ltd. Whose net assets as per the balance sheet work out to rs500000. X Ltd agrees to pay rs.350000 to equity shareholders, rs 250000 to preference shareholders and rs 200000 to debenture holders. The purchase consideration agreed to be paid is?
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X Ltd. Acquires the business of Y Ltd. Whose net assets as per the bal...
Calculation of Purchase Consideration
- The net assets of Y Ltd as per the balance sheet is Rs. 500,000.
- X Ltd agrees to pay Rs. 350,000 to equity shareholders, Rs. 250,000 to preference shareholders, and Rs. 200,000 to debenture holders.
- Therefore, the total payment agreed to be made by X Ltd is Rs. 800,000.
- This amount is the purchase consideration.
Explanation
Purchase consideration is the total amount that a company pays to acquire another company or business. In this case, X Ltd is acquiring the business of Y Ltd, and the purchase consideration is Rs. 800,000.
The purchase consideration is calculated by adding the amounts agreed to be paid to the equity shareholders, preference shareholders, and debenture holders. This is because when a company is acquired, the new owner is responsible for paying off the debts and liabilities of the acquired company.
Once the purchase consideration is paid, the acquiring company owns the assets and liabilities of the acquired company. This allows the acquiring company to expand its business and increase its market share.
In summary, the purchase consideration is the total amount that the acquiring company pays to acquire the assets and liabilities of the acquired company.
- The net assets of Y Ltd as per the balance sheet is Rs. 500,000.
- X Ltd agrees to pay Rs. 350,000 to equity shareholders, Rs. 250,000 to preference shareholders, and Rs. 200,000 to debenture holders.
- Therefore, the total payment agreed to be made by X Ltd is Rs. 800,000.
- This amount is the purchase consideration.
Explanation
Purchase consideration is the total amount that a company pays to acquire another company or business. In this case, X Ltd is acquiring the business of Y Ltd, and the purchase consideration is Rs. 800,000.
The purchase consideration is calculated by adding the amounts agreed to be paid to the equity shareholders, preference shareholders, and debenture holders. This is because when a company is acquired, the new owner is responsible for paying off the debts and liabilities of the acquired company.
Once the purchase consideration is paid, the acquiring company owns the assets and liabilities of the acquired company. This allows the acquiring company to expand its business and increase its market share.
In summary, the purchase consideration is the total amount that the acquiring company pays to acquire the assets and liabilities of the acquired company.
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X Ltd. Acquires the business of Y Ltd. Whose net assets as per the bal...
5,00,000
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X Ltd. Acquires the business of Y Ltd. Whose net assets as per the balance sheet work out to rs500000. X Ltd agrees to pay rs.350000 to equity shareholders, rs 250000 to preference shareholders and rs 200000 to debenture holders. The purchase consideration agreed to be paid is?
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X Ltd. Acquires the business of Y Ltd. Whose net assets as per the balance sheet work out to rs500000. X Ltd agrees to pay rs.350000 to equity shareholders, rs 250000 to preference shareholders and rs 200000 to debenture holders. The purchase consideration agreed to be paid is? for B Com 2024 is part of B Com preparation. The Question and answers have been prepared according to the B Com exam syllabus. Information about X Ltd. Acquires the business of Y Ltd. Whose net assets as per the balance sheet work out to rs500000. X Ltd agrees to pay rs.350000 to equity shareholders, rs 250000 to preference shareholders and rs 200000 to debenture holders. The purchase consideration agreed to be paid is? covers all topics & solutions for B Com 2024 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for X Ltd. Acquires the business of Y Ltd. Whose net assets as per the balance sheet work out to rs500000. X Ltd agrees to pay rs.350000 to equity shareholders, rs 250000 to preference shareholders and rs 200000 to debenture holders. The purchase consideration agreed to be paid is?.
X Ltd. Acquires the business of Y Ltd. Whose net assets as per the balance sheet work out to rs500000. X Ltd agrees to pay rs.350000 to equity shareholders, rs 250000 to preference shareholders and rs 200000 to debenture holders. The purchase consideration agreed to be paid is? for B Com 2024 is part of B Com preparation. The Question and answers have been prepared according to the B Com exam syllabus. Information about X Ltd. Acquires the business of Y Ltd. Whose net assets as per the balance sheet work out to rs500000. X Ltd agrees to pay rs.350000 to equity shareholders, rs 250000 to preference shareholders and rs 200000 to debenture holders. The purchase consideration agreed to be paid is? covers all topics & solutions for B Com 2024 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for X Ltd. Acquires the business of Y Ltd. Whose net assets as per the balance sheet work out to rs500000. X Ltd agrees to pay rs.350000 to equity shareholders, rs 250000 to preference shareholders and rs 200000 to debenture holders. The purchase consideration agreed to be paid is?.
Solutions for X Ltd. Acquires the business of Y Ltd. Whose net assets as per the balance sheet work out to rs500000. X Ltd agrees to pay rs.350000 to equity shareholders, rs 250000 to preference shareholders and rs 200000 to debenture holders. The purchase consideration agreed to be paid is? in English & in Hindi are available as part of our courses for B Com.
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X Ltd. Acquires the business of Y Ltd. Whose net assets as per the balance sheet work out to rs500000. X Ltd agrees to pay rs.350000 to equity shareholders, rs 250000 to preference shareholders and rs 200000 to debenture holders. The purchase consideration agreed to be paid is?, a detailed solution for X Ltd. Acquires the business of Y Ltd. Whose net assets as per the balance sheet work out to rs500000. X Ltd agrees to pay rs.350000 to equity shareholders, rs 250000 to preference shareholders and rs 200000 to debenture holders. The purchase consideration agreed to be paid is? has been provided alongside types of X Ltd. Acquires the business of Y Ltd. Whose net assets as per the balance sheet work out to rs500000. X Ltd agrees to pay rs.350000 to equity shareholders, rs 250000 to preference shareholders and rs 200000 to debenture holders. The purchase consideration agreed to be paid is? theory, EduRev gives you an
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