Swetha Ltd. was formed with an authorized capital of Rs.20,00,000 divided into equality shares of Rs.10 each, to acquire the business of L&M whose balance sheet on the date of acquisition was as follows:
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you are required to record the above and prepare the balance sheet of swetha ltd ass 618233
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Assets |
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Capital |
10,00,000 |
Freehold Premises |
14,00,000 |
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General Reserve |
7,00,000 |
Stock |
2,00,000 |
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Sundry Creditors |
3,00,000 |
Sundry Debits 2,70,000 |
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Less: Provision for Bad Debts: 20,000 |
2,50,000 |
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Cast at Bank |
1,50,000 |
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20,00,000 |
20,00,000 |
The purchase price was agreed upon at Rs.23,00,000 to be paid in Rs.20,00,000 fully paid equity shares at Rs.11 and the balance in cash. You are required to record the above and prepare the balance sheet of Swetha Ltd. assuming the vendor’s account is finally settled.
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