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 _____________.

Rs. 3,00,000

No worries! We‘ve got your back. Try BYJU‘S free classes today!

Rs. 2,95,000

No worries! We‘ve got your back. Try BYJU‘S free classes today!

Rs. 3,45,000

Right on! Give the BNAT exam to get a 100% scholarship for BYJUS courses

Rs. 2,45,000

No worries! We‘ve got your back. Try BYJU‘S free classes today!

Open in App

Solution

The correct option is B Rs. 3,45,000
Purchase consideration will be calculated as:

Payment done through:

Issue of 10000 Shares of Rs.10 each (Market value @ Rs.15) = Rs.150000
Issue of 1000 debenture @5% discount = Rs. 95000
Liabilities Taken over = Rs.100000
---------------------
Purchase Consideration Rs.345000
----------------------

Suggest Corrections

Similar questions

Q. '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 _______________.

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.

Q. G Ltd purchased land and building from H Ltd. at a book value of Rs. 2,00,000. The consideration was paid by issue of 12% debentures of Rs. 100 each at a discount of 20%. For this transaction, the debentures account would be credited with -

Q. Pass necessary journal entries for the following transactions in the books of Rajan Ltd :
(a) Rajan Ltd. purchased machinery of Rs 7,20,000 from Kundan Ltd. The payment was made to Kundan Ltd. by issue of equity shares of Rs 100 each at 10% discount.
(b) Rajan Ltd purchased a running business from Vikas Ltd. for a sum of Rs 2,50,000 payable as Rs 2,20,000 in fully paid equity shares of Rs 10 each and balance by a bank draft. The assets and liabilities consisted of the following :
Plant & Machinery Rs 90,000; Building Rs 90,000; Sundry Debtors Rs 30,000; Stock Rs 50,000; Cash Rs 20,000; Sundry Creditors Rs 20,000.

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.

Join BYJU'S Learning Program