A Ltd acquired business of B Ltd. The Assets and Liabilities of B Ltd. were taken...

 

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A Ltd acquired business of B Ltd. The Assets and Liabilities of B Ltd. were taken over at an agreed value of Rs. 82,50,000 and Rs. 65,00,000 respectively. A Ltd. agreed to issue 75,000 equity shares of Rs. 10 each fully paid and 10% 50,000 Preference shares of Rs. 10 each fully paid to the equity shareholders and preference shareholders of B Ltd. respectively. The Realization expenses of Rs. 25,000 were paid by the Transferee Company. The Capital Reserve account will be credited by Rs. A Ltd acquired business of B Ltd. The Assets and Liabilities of B Ltd. were taken over at an agreed value of Rs. 82,50,000 and Rs. 65,00,000 respectively. A Ltd. agreed to issue 75,000 equity shares of Rs. 10 each fully paid and 10% 50,000 Preference shares of Rs. 10 each fully paid to the equity shareholders and preference shareholders of B Ltd. respectively. The Realization expenses of Rs. 25,000 were paid by the Transferee Company. The Capital Reserve account will be credited by Rs. A Ltd acquired business of B Ltd. The Assets and Liabilities of B Ltd. were taken over at an agreed value of Rs. 82,50,000 and Rs. 65,00,000 respectively. A Ltd. agreed to issue 75,000 equity shares of Rs. 10 each fully paid and 10% 50,000 Preference shares of Rs. 10 each fully paid to the equity shareholders and preference shareholders of B Ltd. respectively. The Realization expenses of Rs. 25,000 were paid by the Transferee Company. The Capital Reserve account will be credited by Rs. A Ltd acquired business of B Ltd. The Assets and Liabilities of B Ltd. were taken over at an agreed value of Rs. 82,50,000 and Rs. 65,00,000 respectively. A Ltd. agreed to issue 75,000 equity shares of Rs. 10 each fully paid and 10% 50,000 Preference shares of Rs. 10 each fully paid to the equity shareholders and preference shareholders of B Ltd. respectively. The Realization expenses of Rs. 25,000 were paid by the Transferee Company. The Capital Reserve account will be credited by Rs.

Answer rating: 100% (QA)

Capital Reserve If the amount of the consideration is lower than the value of the net assets acquire... View the full answer