'A' Ltd acquires 'B' Ltd and agrees to issue 3 shares of Rs. 10 each, Rs. 9 paid up and the market value of Rs.15 per share for every 5 shares in 'B' Ltd. If B Ltd has 100000 shares of Rs.10 each, Rs.5 paid up and market value Rs 8 per shares therefore, the amount of purchase consideration is _______________.

Rs. 9,00,000

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Rs. 6,00,000

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Rs. 5,40,000

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Rs. 8,00,000

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Solution

The correct option is A Rs. 9,00,000
Calculation:
Step 1: $1, 00, 000$ X $3$ X Rs. $15$ = $45, 00, 000$
Step 2: Step 1 divide by 5= Rs. $9, 00, 000$
Note: Market value of shares has been considered to calculate the purchase consideration.

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Q. A Ltd takes over B Ltd and agrees to issue to shareholders of B Ltd. 10000 shares of Rs.10 each paid up but having a market value of Rs.15 each and 1000 debentures of Rs.100 each at a discount of 5% in B Ltd. B Ltd, Also has trade creditors of Rs. 100000. The Purchase consideration is _____________.

DG Ltd Purchased assets of Rs 2,50,000 from VG Ltd . DG Ltd issued equity shares of Rs 50 each fully paid in consideration at a discount of Rs 30. Calculate the no of shares issued.

DG Ltd Purchased assets of Rs 2,50,000 from VG Ltd . DG Ltd issued equity shares of Rs 50 each fully paid in consideration at a premium of Rs 30. Calculate the no of shares issued.

Bhagwati Ltd. invited applications for issuing 2,00,000 equity shares of Rs 10 each. The amount were payable as follows :

On Application --Rs 3 per share.

On allotment --Rs 5 per share.

On first and final call -- Rs 2 per share.

Application were received for 3,00,000 shares and pro-rata allotment was made to all the applicants. Money overpaid on application was adjusted towards allotment money. B, who was allotted 3,000 shares, 2,500 shares were reissued as fully paid up @ Rs 8 per share.

Pass necessary journal entries to record the above transactions in the books of Bhagwati Ltd.

(a) A company forfeited 200, shares of Rs 20 each, Rs 15 per share called up on which Rs 10 per share had been paid Directors reissued all the forfeited shares to B as Rs 15 per share paid up, for a payment of Rs 10 each . Give journal entries in the books of the company for forfeiture and re-issue of shares.

(b) A Ltd. forfeited 100 equity shares of the face value of Rs 10 each, for the non-payment of first call of Rs 2 per share. Rs 6 per share had already been called and paid. These shares were subsequently re-issued as fully paid at the rate of Rs 7 per share. Give journal entries in the books of the company for forfeiture and re-issue of shares.

Pass journal entries for the Forfeiture and Re-issue in the following cases:

(a) X Ltd. forfeited 200 shares of Ravi of Rs 10 each Rs 8 called up, on which he had paid application and allotment money of Rs 3 per share. Out of these, 100 shares were re-issued as fully paid up for Rs 8 per share.

(b) Y Ltd. forfeited 300 shares of Rs 10 each, Rs 7 called up, for non-payment of First Call of Rs 2 per share. Out of these, 100 shares were immediately re-issued at Rs 6 per share.

(c) Z Ltd. forfeited 600 shares of Rs 10 each, on which first call of Rs 3 per share was not received; the second and final call of Rs 2 per share has not yet been called. Out of these, 200 shares were re-issued as Rs 8 paid-up for Rs 7 per share.

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The correct option is A Rs. 9,00,000Calculation: Step 1: 1,00,000 X 3 X Rs.15=45,00,000Step 2: Step 1 divide by 5= Rs.9,00,000Note: Market value of shares has been considered to calculate the purchase consideration.

The correct option is A Rs. 9,00,000
Calculation:
Step 1: $1, 00, 000$ X $3$ X Rs. $15$ = $45, 00, 000$
Step 2: Step 1 divide by 5= Rs. $9, 00, 000$
Note: Market value of shares has been considered to calculate the purchase consideration.