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
- Operating Margin can be numerically expressed in the form of following equation:-
- Which of the following book is both a journal and a ledger?
- An investment project costs ₹1,00,000 and is expected to generate cash inflows of ₹30,000 per year for 5 years. If the cost of capital is 10%, determine wh...
- Which accounting concept requires that expenses be matched with revenues?
- Which of the following pair is wrongly matched?
- Under Priority Sector Lending (PSL) guidelines, which category of banks is permitted a specific exemption to allocate up to 32% of their PSL target towards...
- What does Standard Costing help in?
- Which of the following statements regarding an auditor's responsibilities is FALSE?
- The Credit Guarantee Fund Trust for Micro and Small Enterprises (CGTMSE) has been set up by the Government of India, with which of the following?
- In the Indian debt market, which of the following is a key intermediary that guarantees the subscription of a bond issue?
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)