Answered

Get expert advice and community support for your questions on IDNLearn.com. Discover comprehensive answers to your questions from our community of knowledgeable experts.

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

We value your presence here. Keep sharing knowledge and helping others find the answers they need. This community is the perfect place to learn together. Your search for solutions ends here at IDNLearn.com. Thank you for visiting, and come back soon for more helpful information.