Question 19 Chapter 9 of +2-A - T.S. Grewal 12 Class

Question 19 Chapter 9 of +2-A

Table of Contents

The solution of Question 19 Chapter 9 of +2-A: –

T.S. Grewal’s Double Entry Book Keeping +2 (Vol. I: Accounting for Not-for-Profit Organizations and Partnership Firms)

T.S. Grewal’s Double Entry Book Keeping (Vol. II: Accounting for Companies)

19.Star Ltd. took over the assets of ₹ 6,60,000 and liabilities of ₹ 80,000 of Moon Ltd. for ₹ 6,00,000. Give necessary Journal entries in the books of Star Ltd. assuming that:
Case (a): The purchase consideration was payable 10% in cash and the balance in 5,400; 12% Debentures of ₹ 100 each.
Case (b): The purchase consideration was payable 10% in cash and the balance in 4,500; 12% Debentures of ₹ 100 each issued at 20% premium..

The solution of Question 19 Chapter 9 of +2-A: –


Date	Particulars		L.F.	Debit	Credit
	Assets A/c	Dr		6,60,000
	Goodwill A/c	Dr		20,000
	To Liabilities A/c				80,000
	To Moon Ltd. A/c				6,00,000
( a )	(Being business purchased from Moon ltd. )
	Moon Ltd A/c	Dr		6,00,000
	To Cash A/c				60,000
	To 12%Debenture A/c				5,40,000
	(Being Purchase consideration discharged)
( b )	Moon Ltd. A/c	Dr		6,00,000
	To Cash A/c				60,000
	To 12%Debenture A/c				4,50,000
	To Securities Premium Reserve A/c				90,000
	(Being purchase consideration )