A company took over the following assets and liabilities at an agreed price of Rs. 4,95,000.
| Land & building | Rs. 7,00,000 |
| Furniture | Rs. 40,000 |
| Debtors | Rs. 60,000 |
| Creditors | Rs. 3,00,000 |
| Bills payable | Rs. 5,000 |
The company paid the purchase consideration amount by issuing shares of Rs. 100 each at 10% premium.
Required: Journal entries for purchase of assets and liabilities.
Ans: Purchase consideration Rs. 4,95,000
Asked Years
