Raju, Jyoti and Bhola carry on business in partnership under the style of M/s R &...
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Raju, Jyoti and Bhola carry on business in partnership under the style of M/s R & Co sharing profits and losses in the ratio of 5:3:2. They have floated R Pvt. Ltd for the purpose of takeover of their business. The following is the Balance Sheet of the firm as on 31st December, 2018: Liabilities ₹ Assets Capital Account: Raju Jyoti Bhola Creditors Cash 101000 Bank 151000 Debtors 133000 Provision Stock Fixed Assets at WDV 60000 (-) 2000 50000 Expenditure related to R. Pvt. Ltd: Formation Expenses 12000 Bank Account (note-1) 3000 ₹ 6000 14000 58000 42000 300000 15000 435000 435000 Note-1: (In the name of R. Pvt. Ltd.) Deposit of par value of 300 equity shares of 10 each, subscribed equally by the partners as subscribers to the memorandum and article of association. On that day R Pvt. Ltd took over the business for a total consideration of 5,00,000 (excluding 300 shares allotted as subscribers of memorandum). The purchase consideration was to be discharge by the allotment of equity shares of 10 each at par in the profit- sharing ratio and 15% debenture of 100 each at par for surplus capital. The directors of R Pvt Ltd revalued fixed assets of R & Co. as 4,00,000. You are asked to: (a) State the number of equity shares and debenture allotted by R. Pvt Ltd to Raju, Jyoti & Bhola. (b) Show the journal entries in connection with the above transaction in the books of R. Pvt Ltd. Show your workings. Raju, Jyoti and Bhola carry on business in partnership under the style of M/s R & Co sharing profits and losses in the ratio of 5:3:2. They have floated R Pvt. Ltd for the purpose of takeover of their business. The following is the Balance Sheet of the firm as on 31st December, 2018: Liabilities ₹ Assets Capital Account: Raju Jyoti Bhola Creditors Cash 101000 Bank 151000 Debtors 133000 Provision Stock Fixed Assets at WDV 60000 (-) 2000 50000 Expenditure related to R. Pvt. Ltd: Formation Expenses 12000 Bank Account (note-1) 3000 ₹ 6000 14000 58000 42000 300000 15000 435000 435000 Note-1: (In the name of R. Pvt. Ltd.) Deposit of par value of 300 equity shares of 10 each, subscribed equally by the partners as subscribers to the memorandum and article of association. On that day R Pvt. Ltd took over the business for a total consideration of 5,00,000 (excluding 300 shares allotted as subscribers of memorandum). The purchase consideration was to be discharge by the allotment of equity shares of 10 each at par in the profit- sharing ratio and 15% debenture of 100 each at par for surplus capital. The directors of R Pvt Ltd revalued fixed assets of R & Co. as 4,00,000. You are asked to: (a) State the number of equity shares and debenture allotted by R. Pvt Ltd to Raju, Jyoti & Bhola. (b) Show the journal entries in connection with the above transaction in the books of R. Pvt Ltd. Show your workings.
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Related Book For
Canadian Income Taxation Planning And Decision Making
ISBN: 9781259094330
17th Edition 2014-2015 Version
Authors: Joan Kitunen, William Buckwold
Posted Date:
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