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The capital of A, B, and C partnership firm at the date of purchase by the limited company were Rs.10,000, Rs.6,000, and Rs.5,000. The partnership firm was converted into a limited company and assets and liabilities were sold to the company agreed to pay Rs. 8,000 more than the book value and machinery which was taken at Rs. 1,000 less than the book value. Calculate purchase consideration under net asset method.?
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Calculation of Purchase Consideration under Net Asset Method

Step 1: Calculation of Book Value of Assets and Liabilities

The book value of assets and liabilities can be calculated as follows:

Book Value of Assets
= Capital of A + Capital of B + Capital of C + Rs.8,000 (Agreed value) - Rs.1,000 (Machinery depreciation)
= Rs.10,000 + Rs.6,000 + Rs.5,000 + Rs.8,000 - Rs.1,000
= Rs.28,000

Book Value of Liabilities
= Rs.0 (Assuming no liabilities)

Step 2: Calculation of Net Asset Value

The net asset value can be calculated as follows:

Net Asset Value
= Book Value of Assets - Book Value of Liabilities
= Rs.28,000 - Rs.0
= Rs.28,000

Step 3: Calculation of Purchase Consideration

The purchase consideration can be calculated by adding a premium to the net asset value as follows:

Purchase Consideration
= Net Asset Value + Premium
= Rs.28,000 + Rs.8,000
= Rs.36,000

Therefore, the purchase consideration under the net asset method is Rs.36,000.
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The capital of A, B, and C partnership firm at the date of purchase by the limited company were Rs.10,000, Rs.6,000, and Rs.5,000. The partnership firm was converted into a limited company and assets and liabilities were sold to the company agreed to pay Rs. 8,000 more than the book value and machinery which was taken at Rs. 1,000 less than the book value. Calculate purchase consideration under net asset method.?
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The capital of A, B, and C partnership firm at the date of purchase by the limited company were Rs.10,000, Rs.6,000, and Rs.5,000. The partnership firm was converted into a limited company and assets and liabilities were sold to the company agreed to pay Rs. 8,000 more than the book value and machinery which was taken at Rs. 1,000 less than the book value. Calculate purchase consideration under net asset method.? 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 The capital of A, B, and C partnership firm at the date of purchase by the limited company were Rs.10,000, Rs.6,000, and Rs.5,000. The partnership firm was converted into a limited company and assets and liabilities were sold to the company agreed to pay Rs. 8,000 more than the book value and machinery which was taken at Rs. 1,000 less than the book value. Calculate purchase consideration under net asset method.? covers all topics & solutions for B Com 2024 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for The capital of A, B, and C partnership firm at the date of purchase by the limited company were Rs.10,000, Rs.6,000, and Rs.5,000. The partnership firm was converted into a limited company and assets and liabilities were sold to the company agreed to pay Rs. 8,000 more than the book value and machinery which was taken at Rs. 1,000 less than the book value. Calculate purchase consideration under net asset method.?.
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