Calculation of PC

 

Liabilities side of vendor co. displays the following items:

Debentures Rs. 1,00,000

Trade Creditors Rs. 30,000

Loan from Bank Rs. 40,000

A) The Purchasing company agreed to take over the the assets of Rs. 3,45000 and to take over debentures.

B) The Purchasing company agreed to take over the the assets of Rs. 3,45000 and trade creditos. Other outside Liabilities were discharged by purchasing company at their book values.

Calculate the amont of Purchase Consideration in both the above cases. 

 Thanks..!!

Replies (3)

345+100=445

345+30=375

How is it Possible Ankit Rs. 3,45,000 are for Assets and other for Liabilities. How can we add both of them..? Anyone Plz solve my query. Also give the reasons supporting your calculation. I m waiting for ur reply..!!

i think it should be

case 1: 345-100=245

and

case 2: 345-30=315

P.C. is Asset-liabilities of the vendor company taken over by the Purchasing Co.

i hope this makes sense !!

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