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Question
Pass necessary journal entries for the following transactions in the books of Gopal Ltd:
Purchased a running business from Aman Ltd, for a sum of Rs 15,00,000. The payment of Rs 12,00,000 was made by issue of fully paid equity shares of Rs 10 each and balance by a bank draft. The assets and liabilities consisted of the following: Plant Rs 3,50,000; Stock Rs 4,50,000; Land and Building Rs 6,00,000; Sundry Creditors Rs 1,00,000
Solution
| Journal Entries | ||||
| Date | Particulars | L.F. |
Debit Rs |
Credit Rs |
|
Plant A/c Dr. Land and Building A/c Dr. Stock A/c Dr. Goodwill A/c (Balancing Figure) Dr. To Sundry Creditors A/c To Aman Ltd. A/c (Being purchase of the business from Aman ltd.) |
3,50,000 6,00,000 4,50,000 2,00,000
|
1,00,000 15,00,000
|
||
|
Aman Ltd. A/c Dr. To Equity share capital A/c To Bank A/c (Being issue of 1,20,000 share of Rs 10 each and remaining payment is made through bank draft) |
15,00,000
|
12,00,000 3,00,000
|
||
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