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
You need to be the querist or approved CAclub expert to take part in this query .
Click here to login now
Click here to login now
Similar Resolved Queries
Unanswered Queries
- Due date for filing return for the partner in partnership subjected to Tax Audit
- Query on effect of registration of property
- GST on reimbursement of expenses
- Equity Share Sale and Purchase
- Goodwill transfer of deceased father’s firm – ICAI applying a 27.04.2026 cut-off to the 3 year limit
- Visiting card purchase
- Additional trade name
- Wrong CMPo8 file
- Whether output tax is taken credit by purchaser
- Number of years as per AS amortisation of Goodwill
- Classification of income of P Ltd company as business or profession
- Opting out" of regime provided under subsection (1A) of Section 115BAC but Form 10IEA is not filed.
- "Please ensure that the Total of the Deductions u/s 54F match the same in Table D in Sch CG"
- Need to correct "Whether it is last installment " response in Form 26 QB
- " Income from House Property " in joint names of co-owners
- REGARDING TDS RETURN OF FORM 27Q
- Notice under e-Verification Scheme
- GST demand notice for ITC reversal against exempted supply.
- RCM ON SECURITY CHARGES FROM INDIVIDUALS
- How to get money back from delisted company
Trending Online Classes
-
DT & Audit (Exam Oriented Fastrack Batch) - For May 26 Exams and onwards Full English
CA Bhanwar Borana & CA Shubham Keswani
Subscribe to Pro
Join an elite circle of professionals
CAclubindia
