Neeraj Ltd. took over business of Ajay Enterprises on 1-04-2020. The details of the agreement regarding the assets and liabilities to be taken over are:
| Particulars | Book Value (₹) | Agreed Value (₹) |
| Building | 20,00,000 | 35,00,000 |
| Plant and Machinery | 12,00,000 | 8,00,000 |
| Stock | 4,00,000 | 4,00,000 |
| Trade Receivables | 5,00,000 | 4,00,000 |
| Creditors | 2,00,000 | 3,00,000 |
| Outstanding Expenses | 50,000 | 1,00,000 |
It was decided to pay for purchase consideration as ₹ 7,00,000 through Cheque and balance by issue of 2,00,000, 9% Debentures of ₹ 20 each at a premium of 25%. Journalise.
Solutions :
