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

Question 19 Chapter 9 of +2-A

Question 19 Chapter 9 of +2-A

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 )        

 

 


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Also, Check out the solved question of previous Chapters: –

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)

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

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

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