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Blue Prints Ltd., purchased building worth $150,000, machinery worth $140,000 and furniture worth $10,000 from XYZ Co., and took over its liabilities of $20,000 for
Blue Prints Ltd., purchased building worth $150,000, machinery worth $140,000 and furniture worth $10,000 from XYZ Co., and took over its liabilities of $20,000 for a purchase consideration of $315,000. Blue Prints Ltd., paid the purchase consideration by issuing 12% debentures of $100 each at a premium of 5%. Record necessary journal entries and pass them to ledger accounts. Also create necesary postings in P&L statement and Balance sheet.
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