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show all the journal and workings part 12. CK Products Ltd. formed with an authorised capital of 10,00,000 divided into 50,000 equity shares of 10
show all the journal and workings part
12. CK Products Ltd. formed with an authorised capital of 10,00,000 divided into 50,000 equity shares of 10 each and 50,000 preference shares of * 10 each to acquire the business of LG Chemicals whose balance sheet on 31st March, 2019 was as under: Sundry creditors 9,000 Bank loan Sundry debtors 31,000 19,000 Stock Capital accounts: 94,000 Trade marks Laha 10,000 2,10,000 Plant and machinery 1,25,000 Gupta 1,62,000 3,72,000 Land and building 1,40,000 4,00,000 4,00,000 The following terms were agreed : (i) The purchase consideration was fixed at * 4,50,000. It was to be paid 1,50,000 in fully paid equity shares, * 2,50,000 in fully paid preference shares and the balance in cash. (ii) The company took over all assets except trade marks and assumed sundry creditors. The stock and plant and machinery were valued by the company at 5% more than the book value and land and building at 10% more than the book value while the sundry debtors were subject to a provision of 3,000 for doubtful debts. The balance of both kinds of shares were issued to public which were fully paid. How You are required to pass necessary journal entries in the books of CK Products Ltd. and prepare its balance sheet. 13. Somsons Ltd. agreed to purchase the business of a firm consisting of two brothers, K. Som and D. Som as on 31st March, 2019. The balance sheet of the firm on that date was as follows: 47,000 Capital accounts: Land and building 76,000 K. Som 28,000 Plant and machinery 58,000 D. Som 7,000 Furniture and fixtures 30,000 General reserve Stock-in-trade 62,000 37,000 55,000 Sundry debtors Sundry creditors 3,000 Cash 5,000 Outstanding expenses 2,04,000 2,04,000 The company agreed to take over the liabilities and all the assets, with the exception of cash, the agreed purchase price being 1,80,000 to be satisfied as to 1/4th in cash and 3/4ths by the issue of fully paid equity shares of * 10 each at an agreed value of 12:50 per share. Ile company made the following revaluations of the assets taken over when bringing them into books * 62,000 Land and building 25,000 Plant and machinery 5,000 Furniture and fixtures 58,000 Stock-in-trade 50,000 Sundry debtors Give the entries necessary to record the acquisition of the business in the books of the company. ICU. B.Com (Hone 1 75,000 18. Lata and Asha are partners sharing profits and losses in the ratio of 3 : 2. The balance sheet of the firm as on 31st March, 2019 is given below: Balance Sheet as on 31.3.19 Liabilities Assets Capital accounts: Land and building Lata 1,20,000 Plant and machinery 1,05,600 Asha 80,000 Bills receivable 12,000 Bank overdraft 65,000 Stock 31,400 Creditors 44,800 Book debt 80,500 Cash in hand 5,300 3,09,800 3,09,800 The partners agree to convert the partnership firm into a private limited company on the date of the balance sheet on the following terms and conditions : (i) The authorised capital of the company will be 5,00,000 consisting of 30,000 equity shares of 10 each and 2,000 preference shares of 100 each. (ii) All assets and liabilities to be taken over by the company at the following revalued figures : Land and building 95,000 ; Plant and machinery 92,000 ; Bills receivable 12,000 ; Stock* 36,000 ; Book debt a provision @ 10% to be created ; Cash in hand 5,300 ; Bank overdraft * 65,000 ; Creditors 40,000 ; Goodwill is to be valued at 15,000. (iii) The purchase consideration is to be discharged by the issue of 12,000 equity shares of * 10 each at a premium of 2 each and 750 preference shares of 100 each and the balance, if any, in cash. Calculate purchase consideration and prepare the opening balance sheet in the books of the new company. [C.U., B.Com. (Hons)] nnco chept as on 31st March, 2019 of X, Y and Z carrying on business in partnershipStep by Step Solution
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