Question

Pass necessary journal entries for the following transactions in the books of Gopal Ltd:

Purchased a running business from Aman Ltd, for a sum of Rs 15,00,000. The payment of Rs 12,00,000 was made by issue of fully paid equity shares of Rs 10 each and balance by a bank draft. The assets and liabilities consisted of the following: Plant Rs 3,50,000; Stock Rs 4,50,000; Land and Building Rs 6,00,000; Sundry Creditors Rs 1,00,000

Answer 1

Journal Entries
Date	Particulars	L.F.	Debit (₹)	Credit (₹)
1.	Plant A/c     ...Dr.		3,50,000
	Land and Building A/c     ...Dr.		6,00,000
	Stock A/c     ...Dr.		4,50,000
	Goodwill A/c (Balancing Figure)     ...Dr.		2,00,000
	To Sundry Creditors A/c			1,00,000
	To Aman Ltd. A/c			15,00,000
	(Being purchase of the business from Aman Ltd.)
2.	Aman Ltd. A/c     ...Dr.		15,00,000
	To Equity share capital A/c			12,00,000
	To Bank A/c			3,00,000
	(Being issue of 1,20,000 share of Rs. 10 each and remaining payment is made through bank draft)