Acquisiton of Business
This query is : Resolved
jayaraman subramanian
(Querist)
15 April 2009
Dear All,
I am working i a Ltd Co. Our Company has acquire the bussiness of one of our group company and we had paid Rs. 2 Crore . I would like to know the accouting entries for the same.
Thks
I am working i a Ltd Co. Our Company has acquire the bussiness of one of our group company and we had paid Rs. 2 Crore . I would like to know the accouting entries for the same.
Thks
Ashish Aggarwal
(Expert)
15 April 2009
Assuming that your company didnot hold any shares of this group Company you will need to pass entry like following
Fixed Asset Dr
Curent Asset Dr
To Liability
To Bank
Fixed Asset Dr
Curent Asset Dr
To Liability
To Bank
Manmohan ACA, CS
(Expert)
17 April 2009
Entry: 1
Business Purchase Dr. 2 Crores
To Cash/ bank / eq share etc 2 Crores
Entry :2
All assets A/c Dr.
General reserve or P/L (if loss)
To All Liability
To Business Purchase
To General reserve or P/L (if profit)
Entry (1) and (2) can be merged
Business Purchase Dr. 2 Crores
To Cash/ bank / eq share etc 2 Crores
Entry :2
All assets A/c Dr.
General reserve or P/L (if loss)
To All Liability
To Business Purchase
To General reserve or P/L (if profit)
Entry (1) and (2) can be merged
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