Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Q2: The following are the liabilities and assets of Amrita Ltd Bangalore Ltd takes over the business of Amrita Ltd. The value agreed for various

image text in transcribed

Q2: The following are the liabilities and assets of Amrita Ltd Bangalore Ltd takes over the business of Amrita Ltd. The value agreed for various assets are: Goodwill Rs.20000, Land \& Building Rs.27000, Plant and Machinery Rs.20000, Stock Rs.11000 and Debtors Rs.4000. Bangalore Ltd does not take over cash but agrees to assume the liability of sundry creditors at Rs. 7000 and Debentures 20000. Requirements: Change the value agreed for assets and liabilities ems by using your own numbers and answer the following: 1. calculate the purchase consideration. 2. Do the necessary journal entries in books of Bangalore Ltd

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image_2

Step: 3

blur-text-image_3

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Business Accounting Uk Gaap Volume 2

Authors: Alan Sangster, Frank Wood

1st Edition

0273718800, 9780273718802

More Books

Students also viewed these Accounting questions

Question

What other blunt questions do you think would be appropriate?

Answered: 1 week ago