CUET Preparation Today
Answer the questions from the passage- XYZ Ltd. purchased assets worth Rs 3,00,000 from Blue Prints Ltd., and took overs its liabilities of Rs 20,000 for a purchase consideration of Rs 3,15,000. XYZ Ltd., paid the purchase consideration by issuing 12% debentures of Rs 100 each at a premium of 5%. |
Blue Prints Ltd., account will be: |
Debited by Rs 3,00,000 Debited by Rs 3,20,000 Credited by Rs 3,00,000 Credited by Rs 3,15,000 |
Credited by Rs 3,15,000 |
The correct answer is Option 4: Credited by Rs 3,15,000 When XYZ Ltd. purchases the business, the vendor (Blue Prints Ltd.) is credited with the purchase consideration payable to them. Hence, Blue Prints Ltd.’s Account will be credited by Rs 3,15,000 in the books of XYZ Ltd. ***** |
