Discover new perspectives and gain insights with IDNLearn.com. Our platform is designed to provide quick and accurate answers to any questions you may have.

latha limited purchased the business of Aadhira for ₹54,00,000 which is fully paid here of ₹100 each. prepare the entries for latha Limited at par,at premium of 20% and discount of 10%​

Sagot :

Answer:

Step-by-step explanation:

At Par (₹100 each):

Latha Limited pays ₹54,00,000 in cash to acquire Aadhira.

The entry would be:

Dr. Business Acquisition (Goodwill) ₹54,00,000

   Cr. Cash ₹54,00,000

At Premium (20%):

If Latha Limited pays a premium of 20%, the total consideration would be: ₹54,00,000 + 20% = ₹64,80,000

The entry would be:

Dr. Business Acquisition (Goodwill) ₹64,80,000

   Cr. Cash ₹64,80,000

At Discount (10%):

If Latha Limited pays at a discount of 10%, the total consideration would be: ₹54,00,000 - 10% = ₹48,60,000

The entry would be:

Dr. Business Acquisition (Goodwill) ₹48,60,000

   Cr. Cash ₹48,60,000