Question

Jiya Ltd. Purchased a running business from Diya Ltd. for a sum of Rs. 2,00,000 payable by issue of 20,000 equity shares of Rs. 10 each.
The assets and liabilities taken over were:
Building Rs. 80,000, Plant Rs. 80,000, Debtors Rs. 60,000 and creditors Rs. 40,000.
You are required to pass the journal entries in the books of Jiya Ltd.

Answer 1

JOURNAL $\begin{array}{cccccc}\text{Date}& \text{Particulars}& & \text{L.F}& \text{Dr (Rs)}& \text{Cr. (Rs)}\\ & \text{Building A/c}& \text{Dr.}& & 80,000& \\ & \text{Plant A/c}& \text{Dr.}& & 80,000& \\ & \text{Debtors A/c}& \text{Dr.}& & 60,000& \\ & \text{Goodwill A/c}& \text{Dr.}& & 20,000& \\ & \text{To Creditors A/c}& & & & 40,000\\ & \text{To Diya Ltd. A/c}& & & & 2,00,000\\ & \text{(Assets purchased and liabilities taken over from Diya ltd.)}& & & & \\ & & & & & \\ & \text{Diya Ltd A/c}& \text{Dr.}& & 2,00,000& \\ & \text{To Share Capital A/c}& & & & 2,00,000\\ & \text{(Issued shares for consideration other than cash)}& & & & \\ & & & & & \end{array}$