AccountancyNEB 2076 (old course)
११. पि कम्पनी लि. को निम्न सम्पत्ति तथा दायित्वहरूलाई डि.कम्पनी लि.ले स्वीकार गर्यो: D co. Ltd. accepted the following assets and liabilities of P co. Ltd.: फर्निचर (Furnitures): Rs.50,000 मेशिनरी…
3११. पि कम्पनी लि. को निम्न सम्पत्ति तथा दायित्वहरूलाई डि.कम्पनी लि.ले स्वीकार गर्यो: D co. Ltd. accepted the following assets and liabilities of P co. Ltd.:
- फर्निचर (Furnitures): Rs.50,000
- मेशिनरी (Machinery): Rs.60,000
- विविध साहुहरू (Sundry creditors): Rs.30,000
- प्राप्य बिल (Bills receivable): Rs.15,000
- विविध आसामीहरू (Sundry debtors): Rs.15,000
- सामग्री मौज्दात (Inventories): Rs.25,000
- खरीद मूल्य रु.१,८०,००० चुक्ता गर्न डि कम्पनी लि. ले १०% छुट सहित रु.१०० दरका शेयरहरू जारी गर्यो । D company paid the purchase price of Rs. 1,80,000 by issuing shares of Rs. 100 each at a discount of 10%.
तयार गर्नुहोस् (Required): व्यवसाय खरीदका भौचरहरू Entries for purchase of business.
Answer
Journal Entries for Purchase of Business (D co. Ltd. Books)
1. Entry for Purchase of Assets and Liabilities
When D co. Ltd. accepts the assets and liabilities of P co. Ltd., the following journal entry is passed:
| Date | Particulars | L.F. | Amount (Rs.) | Amount (Rs.) |
|---|---|---|---|---|
| 2076/XX/XX | To Furniture A/c | Dr. | 50,000 | |
| To Machinery A/c | Dr. | 60,000 | ||
| To Sundry Debtors A/c | Dr. | 15,000 | ||
| To Bills Receivable A/c | Dr. | 15,000 | ||
| To Inventories A/c | Dr. | 25,000 | ||
| To Sundry Creditors A/c | Cr. | 30,000 | ||
| To Capital Reserve A/c | Cr. | 30,000 | ||
| (Being assets and liabilities taken over) | 165,000 | 165,000 |
Explanation:
- The assets (Furniture, Machinery, Sundry Debtors, Bills Receivable, Inventories) are recorded at their book values.
- The liabilities (Sundry Creditors) are deducted from the total assets.
- The net amount (Rs. 135,000) is transferred to Capital Reserve (since the purchase price is paid in shares, not cash).
2. Entry for Issuance of Shares at a Discount
D co. Ltd. issues 1,800 shares of Rs. 100 each at a 10% discount (i.e., Rs. 90 per share) to pay the purchase price of Rs. 1,62,000 (since Rs. 1,80,000 – Rs. 18,000 discount = Rs. 1,62,000).
| Date | Particulars | L.F. | Amount (Rs.) | Amount (Rs.) |
|---|---|---|---|---|
| 2076/XX/XX | To P co. Ltd. A/c | Dr. | 1,62,000 | |
| To Share Discount A/c | Dr. | 18,000 | ||
| To Share Capital A/c | Cr. | 1,80,000 | ||
| (Being shares issued at a discount of 10%) | 1,80,000 | 1,80,000 |
Explanation:
- Share Capital (Nominal Value): 1,800 × Rs. 100 = Rs. 1,80,000
- Discount on Shares: 10% of Rs. 1,80,000 = Rs. 18,000
- Amount Received: Rs. 1,62,000 (1,800 × Rs. 90)
3. Final Adjustment Entry (Closing the Purchase Consideration)
The Capital Reserve (Rs. 30,000) from Step 1 and the Share Capital (Rs. 1,80,000) from Step 2 are adjusted to settle the purchase consideration.
| Date | Particulars | L.F. | Amount (Rs.) | Amount (Rs.) |
|---|---|---|---|---|
| 2076/XX/XX | To Capital Reserve A/c | Dr. | 30,000 | |
| To P co. Ltd. A/c | Dr. | 1,32,000 | ||
| To Share Capital A/c | Cr. | 1,62,000 | ||
| (Being purchase consideration settled) | 1,62,000 | 1,62,000 |
Explanation:
- The Capital Reserve (Rs. 30,000) and the remaining P co. Ltd. A/c (Rs. 1,32,000) are settled against the Share Capital (Rs. 1,62,000) issued at a discount.
Final Note:
- The total purchase consideration (Rs. 1,80,000) is paid by issuing 1,800 shares at Rs. 90 each.
- The discount on shares (Rs. 18,000) is recorded as a deduction from share capital.
- The net assets (Rs. 1,35,000) are adjusted against the share capital issued (Rs. 1,62,000), with the remaining Rs. 30,000 transferred to Capital Reserve.
Discussion
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