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M/s X Ltd. took over the assets of Rs.4,60,000 & liabilities of Rs.30,000 of M/s B Ltd for a purchase consideration of Rs.4,40,000. The ^bmpany issued 10% debentures of Rs.100 each at a premium of 10% towards the purchase consideration. No. of debentures issued will be____
- a)4,200
- b)4,000
- c)3,000
- d)4,400
Correct answer is option 'B'. Can you explain this answer?
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M/s X Ltd. took over the assets of Rs.4,60,000 & liabilities of Rs...
From M/s Y Ltd. through a business acquisition. The assets taken over include land, buildings, machinery, and inventory. The fair value of the assets acquired is determined as follows:
Land - Rs.1,00,000
Building - Rs.2,00,000
Machinery - Rs.1,50,000
Inventory - Rs.10,000
The total fair value of the assets acquired is Rs.4,60,000, which is equal to the consideration paid by M/s X Ltd. for the acquisition.
As per the accounting standards, the assets acquired should be recorded at their fair value on the date of acquisition. Therefore, M/s X Ltd. would record the assets acquired as follows:
Land - Rs.1,00,000
Building - Rs.2,00,000
Machinery - Rs.1,50,000
Inventory - Rs.10,000
Total - Rs.4,60,000
The excess of consideration paid over the fair value of assets acquired is called goodwill. In this case, as the consideration paid and fair value of assets acquired are the same, there is no goodwill arising from the acquisition.
M/s X Ltd. would also need to record any liabilities taken over from M/s Y Ltd. at their fair value on the date of acquisition. If there are any differences between the fair value of liabilities assumed and their carrying amount, the difference would be recognized as a gain or loss in the income statement.
Land - Rs.1,00,000
Building - Rs.2,00,000
Machinery - Rs.1,50,000
Inventory - Rs.10,000
The total fair value of the assets acquired is Rs.4,60,000, which is equal to the consideration paid by M/s X Ltd. for the acquisition.
As per the accounting standards, the assets acquired should be recorded at their fair value on the date of acquisition. Therefore, M/s X Ltd. would record the assets acquired as follows:
Land - Rs.1,00,000
Building - Rs.2,00,000
Machinery - Rs.1,50,000
Inventory - Rs.10,000
Total - Rs.4,60,000
The excess of consideration paid over the fair value of assets acquired is called goodwill. In this case, as the consideration paid and fair value of assets acquired are the same, there is no goodwill arising from the acquisition.
M/s X Ltd. would also need to record any liabilities taken over from M/s Y Ltd. at their fair value on the date of acquisition. If there are any differences between the fair value of liabilities assumed and their carrying amount, the difference would be recognized as a gain or loss in the income statement.
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M/s X Ltd. took over the assets of Rs.4,60,000 & liabilities of Rs...
Purchase consideration is 440000 and the x company issued shares of 100 each @110 therefore, 440000÷110= 4000
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M/s X Ltd. took over the assets of Rs.4,60,000 & liabilities of Rs.30,000 of M/s B Ltd for a purchase consideration of Rs.4,40,000. The ^bmpany issued 10% debentures of Rs.100 each at a premium of 10% towards the purchase consideration. No. of debentures issued will be____a)4,200b)4,000c)3,000d)4,400Correct answer is option 'B'. Can you explain this answer?
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M/s X Ltd. took over the assets of Rs.4,60,000 & liabilities of Rs.30,000 of M/s B Ltd for a purchase consideration of Rs.4,40,000. The ^bmpany issued 10% debentures of Rs.100 each at a premium of 10% towards the purchase consideration. No. of debentures issued will be____a)4,200b)4,000c)3,000d)4,400Correct answer is option 'B'. Can you explain this answer? for CA Foundation 2024 is part of CA Foundation preparation. The Question and answers have been prepared according to the CA Foundation exam syllabus. Information about M/s X Ltd. took over the assets of Rs.4,60,000 & liabilities of Rs.30,000 of M/s B Ltd for a purchase consideration of Rs.4,40,000. The ^bmpany issued 10% debentures of Rs.100 each at a premium of 10% towards the purchase consideration. No. of debentures issued will be____a)4,200b)4,000c)3,000d)4,400Correct answer is option 'B'. Can you explain this answer? covers all topics & solutions for CA Foundation 2024 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for M/s X Ltd. took over the assets of Rs.4,60,000 & liabilities of Rs.30,000 of M/s B Ltd for a purchase consideration of Rs.4,40,000. The ^bmpany issued 10% debentures of Rs.100 each at a premium of 10% towards the purchase consideration. No. of debentures issued will be____a)4,200b)4,000c)3,000d)4,400Correct answer is option 'B'. Can you explain this answer?.
M/s X Ltd. took over the assets of Rs.4,60,000 & liabilities of Rs.30,000 of M/s B Ltd for a purchase consideration of Rs.4,40,000. The ^bmpany issued 10% debentures of Rs.100 each at a premium of 10% towards the purchase consideration. No. of debentures issued will be____a)4,200b)4,000c)3,000d)4,400Correct answer is option 'B'. Can you explain this answer? for CA Foundation 2024 is part of CA Foundation preparation. The Question and answers have been prepared according to the CA Foundation exam syllabus. Information about M/s X Ltd. took over the assets of Rs.4,60,000 & liabilities of Rs.30,000 of M/s B Ltd for a purchase consideration of Rs.4,40,000. The ^bmpany issued 10% debentures of Rs.100 each at a premium of 10% towards the purchase consideration. No. of debentures issued will be____a)4,200b)4,000c)3,000d)4,400Correct answer is option 'B'. Can you explain this answer? covers all topics & solutions for CA Foundation 2024 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for M/s X Ltd. took over the assets of Rs.4,60,000 & liabilities of Rs.30,000 of M/s B Ltd for a purchase consideration of Rs.4,40,000. The ^bmpany issued 10% debentures of Rs.100 each at a premium of 10% towards the purchase consideration. No. of debentures issued will be____a)4,200b)4,000c)3,000d)4,400Correct answer is option 'B'. Can you explain this answer?.
Solutions for M/s X Ltd. took over the assets of Rs.4,60,000 & liabilities of Rs.30,000 of M/s B Ltd for a purchase consideration of Rs.4,40,000. The ^bmpany issued 10% debentures of Rs.100 each at a premium of 10% towards the purchase consideration. No. of debentures issued will be____a)4,200b)4,000c)3,000d)4,400Correct answer is option 'B'. Can you explain this answer? in English & in Hindi are available as part of our courses for CA Foundation.
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M/s X Ltd. took over the assets of Rs.4,60,000 & liabilities of Rs.30,000 of M/s B Ltd for a purchase consideration of Rs.4,40,000. The ^bmpany issued 10% debentures of Rs.100 each at a premium of 10% towards the purchase consideration. No. of debentures issued will be____a)4,200b)4,000c)3,000d)4,400Correct answer is option 'B'. Can you explain this answer?, a detailed solution for M/s X Ltd. took over the assets of Rs.4,60,000 & liabilities of Rs.30,000 of M/s B Ltd for a purchase consideration of Rs.4,40,000. The ^bmpany issued 10% debentures of Rs.100 each at a premium of 10% towards the purchase consideration. No. of debentures issued will be____a)4,200b)4,000c)3,000d)4,400Correct answer is option 'B'. Can you explain this answer? has been provided alongside types of M/s X Ltd. took over the assets of Rs.4,60,000 & liabilities of Rs.30,000 of M/s B Ltd for a purchase consideration of Rs.4,40,000. The ^bmpany issued 10% debentures of Rs.100 each at a premium of 10% towards the purchase consideration. No. of debentures issued will be____a)4,200b)4,000c)3,000d)4,400Correct answer is option 'B'. Can you explain this answer? theory, EduRev gives you an
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