B. company Ltd took over the assets of Rs.15,00,000 and liabilities of Rs.2,20,000 of A company Ltd at an agreed price of Rs.13,20,000. The purchaser discharged the purchase price by issuing shares of Rs.100 each at 10% premium

Required: Entries for

1. Purchase of assets and liabilities
2. Balance sheet

Ans: (a) Goodwill a/c Rs.40,000 (b) B/S Total Rs.15,40,000