CBSE 2025, Compartment, Set 1

Question

Aman Ltd. took over the assets of ₹15,00,000 and liabilities of ₹17,00,000 of Kamini Ltd. for a purchase consideration of ₹30,00,000. Aman Ltd. paid 40% of the purchase consideration by cheque and the balance amount by issue of fully paid equity shares of ₹100 each at a premium of 50% in favour of Kamini Ltd. Pass necessary journal entries for the above transactions in the books of Aman Ltd.

Edvaya · Accepted Answer

The correct answer is Subjective. **Journal Entries in the books of Aman Ltd.** | Date | Particulars | L.F. | Dr. Amount (₹) | Cr. Amount (₹) | |---|---|---|---|---| | (i) | Sundry Assets A/c Dr. Goodwill A/c (Bal. Fig.) Dr. To Sundry Liabilities A/c To Kamini Ltd. *(Assets and liabilities of Kamini Ltd. taken over)* | | 15,00,000 32,00,000 | 17,00,000 30,00,000 | | (ii) | Kamini Ltd. Dr. To Bank A/c To Equity Share Capital A/c To Securities Premium A/c *(Purchase consideration discharged: 40% via cheque and balance by issue of 12,000 shares of ₹100 each at 50% premium)* | | 30,00,000 | 12,00,000 12,00,000 6,00,000 | **Working Notes:** 1. Goodwill = Purchase Consideration + Liabilities - Assets $ = 30,00,000 + 17,00,000 - 15,00,000 = ₹32,00,000$. 2. Payment to Kamini Ltd. = ₹30,00,000. Amount via cheque = 40% of 30,00,000 = ₹12,00,000. Amount to be settled via shares = ₹18,00,000. Issue Price = Face Value (100) + Premium (50) = ₹150. No. of shares issued = $18,00,000 / 150 = 12,000$ shares. Equity Share Capital = $12,000 	imes 100 = ₹12,00,000$. Securities Premium = $12,000 	imes 50 = ₹6,00,000$.

Edvaya Target

Edvaya Aspire

Take a Free Mock Test

Target Subjects

Aspire Subjects

Subject Mastery

Accountancy > Accounting For Companies > Accounting For Share Capital

Keep Practicing

Edvaya Target

Current Question

Community Stats

Track Your Progress

Quick Actions

We Value Your Privacy