The shares are purchased by H Ltd. in S. Ltd. for $R s . 2, 80, 000$ . Face value of shares purchased is $R s . 1, 50, 000$ . Holding company's share of capital profits is $R s . 71, 250$ . So, calculate the amount of goodwill?

R s . 1, 30, 000

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

R s . 58, 750

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

R s . 2, 01, 250

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

R s . 5, 01, 250

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

Open in App

Solution

The correct option is B $R s . 58, 750$
Goodwill will be the actual priceless face value of S Ltd. the result will be subtracted from capital profits of holding company's
hence, share purchased= 280000
face value of share =150000
_
130000
subtract capital profit - 71250
of holding company
goodwill = 58750.

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.

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.

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. Calculate the no of shares issued.

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.

Join BYJU'S Learning Program

The shares are purchased by H Ltd. in S. Ltd. for Rs.2,80,000. Face value of shares purchased is Rs.1,50,000. Holding company's share of capital profits is Rs.71,250. So, calculate the amount of goodwill?

The shares are purchased by H Ltd. in S. Ltd. for $R s . 2, 80, 000$ . Face value of shares purchased is $R s . 1, 50, 000$ . Holding company's share of capital profits is $R s . 71, 250$ . So, calculate the amount of goodwill?