A Ltd. acquired assets worth ₹ 1,75,00,000/- from V Ltd. The consideration was paid as follows: Payment by cheque : ₹ 55,00,000/- Remaining by issue of shares to V Ltd. shares of ₹ 10/- are issued at a premium of 20%. Wh

CS Executive · Corporate Accounting and Financial Management · PYQS · December 2025
A Ltd. acquired assets worth ₹ 1,75,00,000/- from V Ltd. The consideration was paid as follows: Payment by cheque : ₹ 55,00,000/- Remaining by issue of shares to V Ltd. shares of ₹ 10/- are issued at a premium of 20%. What will be the number of shares to be issued by A Ltd. to V Ltd ? Pass all the journal entries.

Answer & Explanation:

Journal Entries Particulars INR INR 1. Sundry Assets A/c Dr. To V Ltd. (Being Sundry Assets acquired from V Ltd.) 1,75,00,000 1,75,00,000 2. V Ltd. A/c Dr. To Bank A/c (Being payment to V Ltd.) 55,00,000 55,00,000 3. V Ltd. A/c Dr. To Share Capital A/c To Share Premium A/c (Being share capital issued to V Ltd.) 1,20,00,000 1,00,00,000 20,00,000 Working note: INR Consideration to V Ltd. 1,75,00,000 Payment (55,00,000) Balance Consideration 1,20,00,000 Shares issued at 12/- Number of shares issued 10,00,000

Topics: Corporate Accounting

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