X Company Ltd. acquired the following assets and liabilities at an agreed price of Rs. 11,00,000.
| Machinery | Rs. 10,00,000 |
| Debtors | Rs. 50,000 |
| Furniture | Rs. 5,00,000 |
| O/S payable | Rs. 1,00,000 |
| Bank loan | Rs. 2,00,000 |
| Inventories | Rs. 1,00,000 |
| Creditors | Rs. 1,50,000 |
Required: Journal entries for purchase of assets and liabilities.
Ans: Capital reserve Rs. 1,00,000
A company Ltd took over the following assets and liabilities of a Vendor Company at an agreed price of Rs. 14,30,000.
| Debtors | Rs. 3,50,000 |
| Loan | Rs. 3,00,000 |
| Creditors | Rs. 8,00,000 |
| Furniture | Rs. 8,00,000 |
| Equipment | Rs. 6,00,000 |
| Inventories | Rs. 2,00,000 |
The company paid the purchase price by issuing equity shares of Rs. 100 each at 10% premium.
Required: Journal entries for purchase of assets and liabilities.
Ans: Goodwill Rs. 5,80,000
A limited company issued 13,000 shares of Rs. 100 each to purchase the business consisting following assets and liabilities.
| Current assets | Rs. 2,00,000 |
| Furniture | Rs. 1,50,000 |
| Other fixed assets | Rs. 12,00,000 |
| Current liabilities | Rs. 3,00,000 |
Required: Entry for purchase of business
Ans: Goodwill Rs. 50,000
