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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
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
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