Plz rply........ i m in big confusion

Save Share

This query is : Resolved

pankaj kumar (Querist)

13 September 2012 A company issued 15,000 fully paid equity shares of Rs. 100 each for the purchase of the following assets and liabilities from Gupta Ltd.:
Plant Rs. 3,50,000
Stock Rs. 4,50,000
Building Rs. 6,00,000
Creditors Rs. 1,00,000
journalise. (Source T S Grewal which he has copied from the book of SN Maheshwari)

Solution given is a under:
Plant Dr. 3,50,000
Stock Dr. 4,50,000
Building Dr. 6,00,000
Goodwill (bal.fig.) Dr. 2,00,000
To Creditors 1,00,000
To Gupta Bros. 15,00,000

Gupta Bros. Dr. 15,00,000
To share capital 15,00,000

is the above entry is correct..... as in 12th standard there is no amalgamation so how cn v solve it as per amalgamation rule.

CA VISHNU GAVKARE

CA VISHNU GAVKARE (Expert)

14 September 2012 It is not amalgamation rule. it is normal entry. Shares are not issue to machinery. it is issued to suppier of machinery.

pankaj kumar

pankaj kumar (Querist)

16 September 2012 thnx Mr. Vishnu for rplying.
i didnt get u......... i jst confused on goodwill.......... i think there shuld nt b goodwill...... coz there is no purchase consideration given in d question... i m jst asking abt it from 12th standard point of view.... coz there is no topic of amalgamation in the 12th standard..

CA VISHNU GAVKARE

CA VISHNU GAVKARE (Expert)

16 September 2012 though amalgamation is not there excess amount paid has to be treated as goodwill in any case.

pankaj kumar

pankaj kumar (Querist)

16 September 2012 oh thnx.......... if single machine is purchased and issued shares are more den machine price den wot wuld be answer.....

You need to be the querist or approved CAclub expert to take part in this query .
Click here to login now