Question
Company A takes over Company B on 1st April 2024. The Balance Sheet of Company B shows the following: • Share Capital: ₹10,00,000 (1,00,000 shares of ₹10 each fully paid) • General Reserve: ₹2,00,000 • Profit & Loss A/c (Credit balance): ₹1,00,000 • 12% Debentures: ₹3,00,000 • Sundry Assets: ₹16,00,000 The agreed Purchase Consideration (P
- C was as follows: • For every 2 shares in B, shareholders receive 3 shares of A (FV ₹10, issued at ₹12, i.e., 20% premium). • In addition, shareholders of B receive cash of ₹2,00,000. • A agrees to discharge the debentures of B at a premium of 5%. You are required to determine the amount of Goodwill or Capital Reserve in the books of A Ltd.
More Accounts Questions
- As an auditor you came across a situation where related party transactions have taken place. Which AS deals with it?
- What is the rate of Tax Collected at Source (TCS) required to be collected by E-commerce operators under GST?
- Interest capitalization must cease when:
- Premium income for the year is ₹240 crore, evenly earned. As at year-end, unexpired risk is 50% of premium. Calculate UPR to be carried forward.
- Fixed assets are held by business for __________
- Which of the following is a nominal account?
- Which of the following is true regarding e-invoicing under GST?
- The adequacy of a bank’s liquidity position is determined by which of the following factors?
- Which ratio is commonly used to evaluate the effectiveness of a company’s credit and collection policies?
- Which instrument represents the ownership of a company in the capital market?
Hey! Ask a query
Please enter email id
The email must be a valid email address.
Please enter Mobile Number
Please enter valid Mobile Number
Please enter your Doubt
Think You're Ready for RBI Grade B?
RBI Grade B 2026 Phase 1 Memory Based Paper
- 200 Questions with Detailed Solutions
- Section-wise Coverage (GA, English, Quant & Reasoning)