you are required to record the above transactions in the books of mythali ltd throug 618234

Mythali Ltd. was formed to take over the assets and liabilities of Mr. Ajay and to acquire the adjacent premises. The balance sheet of Mr. Ajay on 31 March 2011 was as follows:

Liabilities

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Assets

Trade Creditors

20,000

Cash in Hand

5,000

Capital

4,80,000

Cash at Bank

30,000

Book Debts

25,000

Stock-in-Trade

1,00,000

Furniture

20,000

Land & Buildings

3,20,000

5,00,000

5,00,000

The purchase consideration was agreed at Rs.6,00,000 and was to be paid as follows:

  1. 4,800 equity shares of Rs.50 each
  2. 3,200, 10% preference shares of Rs.100 each issued at par
  3. Rs.40,000 in cash.

All the assets and liabilities were valued as per the above balance sheet except the book debts which were subject to a bad debts provision of 10% The company raised further capital by issue of 15,000 equity shares of Rs.50 each.The adjoining premises were purchased for Rs.1,00,000 and additional stock for Rs.50,000 was got from open market.

You are required to record the above transactions in the books of Mythali Ltd. through journal entries and draft its opening balance sheet.

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