The solution to Question number 48 of the Accounting for Share Capital chapter of TS Grewal Book 2025-26 Edition
Santoor Ltd. purchased a running business from Sanchar Ltd for ₹ 15,00,000 payable 10% by cheque and the balance by the issue of fully paid Equity Shares of ₹ 100 each at a premium of 20%. The assets and liabilities consisted of the following:
| Particulars | Book Value (₹) | Agreed Value (₹) |
|---|---|---|
| Building | 5,00,000 | 6,50,000 |
| Plant and Machinery | 3,00,000 | 2,50,000 |
| Stock | 6,00,000 | 5,00,000 |
| Trade Receivables | 2,80,000 | 2,50,000 |
| Trade Payables | 1,80,000 | 2,00,000 |
Pass the necessary Journal entries in the books of Sandesh Ltd.
[Ans.: Goodwill – ₹ 50,000; No. of Shares to be issued – 11,250.
Solution:-
