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Corporate accounting DK Goyal B.com chapter 9 Amalgamation of Companies numerical question 5th and 11 solve?
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Corporate accounting DK Goyal B.com chapter 9 Amalgamation of Companie...
Solution:
Numerical 5:
On 1st April 2019, A Ltd. acquired the business of B Ltd. for a purchase consideration of Rs. 6,00,000 paid by issue of equity shares of Rs. 10 each at a premium of Rs. 2 per share. The balance sheet of B Ltd. on that date was as follows:
Liabilities:
Share Capital:
Equity Shares of Rs. 10 each 2,00,000
Reserves and Surplus 1,00,000
Creditors 1,00,000
Assets:
Land and Buildings 2,00,000
Plant and Machinery 1,00,000
Stock 40,000
Debtors 20,000
Cash at Bank 20,000
Prepare the necessary journal entries and show the Balance Sheet of A Ltd. after taking over the business of B Ltd.
Solution:
Journal Entries in the books of A Ltd.:
1. To record the purchase of business of B Ltd.:
Business Purchase A/c Dr. 6,00,000
To Equity Share Capital A/c 2,00,000
To Securities Premium A/c 4,00,000
2. To record the transfer of assets and liabilities of B Ltd. to A Ltd.:
Land and Building A/c Dr. 2,00,000
Plant and Machinery A/c Dr. 1,00,000
Stock A/c Dr. 40,000
Debtors A/c Dr. 20,000
Creditors A/c Dr. 1,00,000
To Business Purchase A/c 6,00,000
Balance Sheet of A Ltd. after taking over the business of B Ltd.
Liabilities:
Equity Share Capital 2,00,000
Securities Premium 4,00,000
Reserves and Surplus -
Creditors 1,00,000
Assets:
Land and Buildings 2,00,000
Plant and Machinery 1,00,000
Stock 40,000
Debtors 20,000
Cash at Bank -
Numerical 11:
X Ltd. acquired the business of Y Ltd. for a purchase consideration of Rs. 5,00,000 paid by issue of equity shares of Rs. 100 each at a premium of Rs. 20 per share. The balance sheet of Y Ltd. on that date was as follows:
Liabilities:
Share Capital:
Equity Share Capital of Rs. 100 each 3,00,000
Reserves and Surplus 1,00,000
Creditors 1,00,000
Assets:
Land and Buildings 2,00,000
Plant and Machinery 1,50,000
Stock 50,000
Debtors 50
Numerical 5:
On 1st April 2019, A Ltd. acquired the business of B Ltd. for a purchase consideration of Rs. 6,00,000 paid by issue of equity shares of Rs. 10 each at a premium of Rs. 2 per share. The balance sheet of B Ltd. on that date was as follows:
Liabilities:
Share Capital:
Equity Shares of Rs. 10 each 2,00,000
Reserves and Surplus 1,00,000
Creditors 1,00,000
Assets:
Land and Buildings 2,00,000
Plant and Machinery 1,00,000
Stock 40,000
Debtors 20,000
Cash at Bank 20,000
Prepare the necessary journal entries and show the Balance Sheet of A Ltd. after taking over the business of B Ltd.
Solution:
Journal Entries in the books of A Ltd.:
1. To record the purchase of business of B Ltd.:
Business Purchase A/c Dr. 6,00,000
To Equity Share Capital A/c 2,00,000
To Securities Premium A/c 4,00,000
2. To record the transfer of assets and liabilities of B Ltd. to A Ltd.:
Land and Building A/c Dr. 2,00,000
Plant and Machinery A/c Dr. 1,00,000
Stock A/c Dr. 40,000
Debtors A/c Dr. 20,000
Creditors A/c Dr. 1,00,000
To Business Purchase A/c 6,00,000
Balance Sheet of A Ltd. after taking over the business of B Ltd.
Liabilities:
Equity Share Capital 2,00,000
Securities Premium 4,00,000
Reserves and Surplus -
Creditors 1,00,000
Assets:
Land and Buildings 2,00,000
Plant and Machinery 1,00,000
Stock 40,000
Debtors 20,000
Cash at Bank -
Numerical 11:
X Ltd. acquired the business of Y Ltd. for a purchase consideration of Rs. 5,00,000 paid by issue of equity shares of Rs. 100 each at a premium of Rs. 20 per share. The balance sheet of Y Ltd. on that date was as follows:
Liabilities:
Share Capital:
Equity Share Capital of Rs. 100 each 3,00,000
Reserves and Surplus 1,00,000
Creditors 1,00,000
Assets:
Land and Buildings 2,00,000
Plant and Machinery 1,50,000
Stock 50,000
Debtors 50
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Corporate accounting DK Goyal B.com chapter 9 Amalgamation of Companies numerical question 5th and 11 solve?
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Corporate accounting DK Goyal B.com chapter 9 Amalgamation of Companies numerical question 5th and 11 solve? 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 Corporate accounting DK Goyal B.com chapter 9 Amalgamation of Companies numerical question 5th and 11 solve? covers all topics & solutions for B Com 2024 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for Corporate accounting DK Goyal B.com chapter 9 Amalgamation of Companies numerical question 5th and 11 solve?.
Corporate accounting DK Goyal B.com chapter 9 Amalgamation of Companies numerical question 5th and 11 solve? 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 Corporate accounting DK Goyal B.com chapter 9 Amalgamation of Companies numerical question 5th and 11 solve? covers all topics & solutions for B Com 2024 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for Corporate accounting DK Goyal B.com chapter 9 Amalgamation of Companies numerical question 5th and 11 solve?.
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