Ashish Ltd. was formed with an authorised capital of ₹48,00,000, divided into equity shares of ₹10 each, to acquire the business of Mr. Gupta, whose balance sheet on the date of acquisition was as follows:

The purchase consideration was agreed upon at ₹56,00,000 to be paid in ₹48,00,000.

Fully-paid equity shares at ₹11 and the balance in cash. Give journal entries and prepare the balance sheet of Ashish Ltd., assuming the vendor’s account is finally settled.

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Liabilities Capital General Reserves Sundry Creditors Amount (3) Assets 24,00,000 Freehold Premises 16,00,000 Stock 8,00,000 Sundry debtors Less: PBDD Cash at Bank 48,00,000 6,40,000 40,000 Amount (3) 28,00,000 8,00,000 6,00,000 6,00,000 48,00,000