Sona Software Limited acquired Mona Hardware Limited for a cash consideration of 300 million The fair value of assets and liabilities taken over are as follows 1 Ascertain the value of goodwill to be recorded in the above transaction 2 How will the goodwill amount be treated in the books of Sona So...

To ascertain the value of goodwill and understand its treatment in the books of Sona Software Limite ...

Sona Software Limited acquired Mona Hardware Limited for a cash consideration of 300 million. The fair

Question:

Sona Software Limited acquired Mona Hardware Limited for a cash consideration of ₹ 300 million. The fair value of assets and liabilities taken over are as follows:

Particulars Assets Cash and bank balance Land and building Plant and machinery Trade receivables Other assets

1. Ascertain the value of goodwill to be recorded in the above transaction.

2. How will the goodwill amount be treated in the books of Sona Software Limited?

Fantastic news! We've Found the answer you've been seeking!

Step by Step Answer:

Related Book For answer-question

Financial Accounting For Managers

ISBN: 9789352868339

3rd Edition

Authors: Sanjay Dhamija

See More Books

Question Posted: Dec 05, 2023 03:03 AM

See More Questions

Italian Ceramics Limited acquired Sonia Tiles Limited for a purchase consideration of 20 million. The fair value of assets and liabilities taken over are as follows: 1. Ascertain the value of...
Joey, a public limited company, operates in the media sector. Joey has investments in two companies. The draft statements of financial position at 30 November 20X4 are as follows: The following...
The consolidated statement of financial position for MIC as at 31 March 2009 and its comparative for 2008 are shown below: The consolidated income statement for MIC for the year ended 31 March 2009...
Describe the three cases to consider when determining if a cost allocation is beneficial.
A type of mirage called a pingo is often observed in Alaska. Pingos occur when the light from a small hill passes to an observer by a path that takes the light over a body of water warmer than the...
Your 45-year-old uncle is 20 years away from retirement; your 35-year-old older sister is about 30 years away from retirement. How might their investment policy statements differ?
The plaintiff, Thelma Agnes Smith, lived with the defendant out of wedlock for several years. When the relationship ended, she sued the defendant, seeking to enforce two written agreements with him...
Mike Greenberg opened Kleene Window Washing Inc. on July 1, 2017. During July, the following transactions were completed. July 1 Issued 12,000 shares of common stock for $12000 cash. 1 Purchased used...
Cash discounts are not taken on shipping costs. Group of answer choices True FalseThis factor is the difference between the net cost of merchandise and the retail selling price: Group of answer...
Briefly explain the accounting for revaluation of an item of PPE.
Hero Moto Corp Ltd. (Formerly Hero Honda Motors Ltd.) is the worlds largest manufacturer of two-wheelers, based in India. In 2001, the company had achieved the coveted position of being the largest...
The 4,000 shares of Medco stock that Diana purchased 11 months ago for $12 per share are now trading at $19 per share. Dianas regular marginal tax rate is 32 percent and her tax rate for long-term...
As an employee of New Hampshire Industries, Kathleen has an opportunity to invest pre-tax income in an employer-sponsored retirement plan. Her employer will contribute 50 cents for every dollar that...
(a) Applying Cristian's algorithm for time synchronisation, a client's clock sends a request at time 3:07:58, the server response with time stamp of 3:08:20. The client receive the response at...
How does an association's vision, mission, and objectives influence its way to deal with key administration and estimation? Examine what top supervisory crews mean for a company's exhibition and its...
Company C, an automobile manufacturer, sold 2 trucks to a customer for $60,000 on January 5, 2014. Each of the trucks has a manufacturing cost of $20,000. What would be the entry to record the...
Suppose a light source emits a Gaussian spectrum centered at wavelength = 1300 nm with a full-width half max (FWHM) bandwidth = 10 nm. (a) Calculate the center frequency f0 of the light spectrum and...
Why do employees "blow the whistle"on other employees for unethical or illegal behavior? One study conducted by the AICPA reported the likelihood that employees would blow the whistle on another...
The water in tank A is at 270 F with quality of 10% and mass 1 lbm. It is connected to a piston/cylinder holding constant pressure of 40 psia initially with 1 lbm water at 700 F. The valve is opened,...
Insurance agents are intermediaries who help other members of the channel by providing information and handling the selling function. Does it make sense for an insurance agent to specialize and work...
Discuss the Place objectives and distribution arrangements that are appropriate for the following products (indicate any special assumptions you have to make to obtain an answer): a. A postal scale...
Give an example of a producer that uses two or more different channels of distribution. Briefly discuss what problems this might cause.
Compare and contrast online transaction processing (OLTP) and online analytical processing (OLAP) databases.
What is Online transaction processing and Online Analytical Processing? How are they different?
Research articles on Online Analytic Processing (OLAP) and Online Transaction Processing (OLTP). Next, compare and contrast the key similarities and differences between Online Analytical Processing...

Sona Software Limited acquired Mona Hardware Limited for a cash consideration of 300 million. The fair

Question:

Particulars Assets Cash and bank balance Land and building Plant and machinery Trade receivables Other assets Liabilities Trade payables Other liabilities (in Million) 11.10 97.25 105.20 66.45 26.50 44.25 12.85

Step by Step Answer:

To ascertain the value of goodwill and understand its treatment in the books of Sona Software Limite...View the full answer

Financial Accounting For Managers

Students also viewed these Business questions