12th | Accounting for Share Capital | Question No. 45 To 48 | Ts Grewal Solution 2025-2026

Question 45:

Mangla Cortubi Ltd. took over a unit of  Mangla Tubes Ltd. consisting of  Machinery 40,00,000, Tools and Dies10,00,000 and Liabilities of  25,00,000 for a consideration of  20,00,000. The consideration was paid by issuing Equity Shares of  10 each at a premium of  5.

You are required to pass the journal entries in the books of  Mangla Cortubi Ltd.

Answer:

Mangla Cortubi Ltd.

Journal 

Date

Particulars

L.F.

Debit

Amount

()

Credit

Amount

()

 

 

 

 

 

(i)

Machinery A/c A/c

Dr.

 

40,00,000

 

 

Tools and Dies A/C

Dr.

 

10,00,000

 

 

  To Sundry Liabilities A/c

 

 

 

25,00,000

 

  To Mangla Tubes Ltd.

 

 

 

20,00,000

 

  To Capital Reserve A/c

 

 

 

5,00,000

 

(Purchase of  assets and liabilities of  Mangla Tubes Ltd.)

 

 

 

 

 

 

 

 

 

 

(ii)

Mangla Tubes Ltd.

Dr.

 

20,00,000

 

 

  To Equity Share Capital A/c

 

 

 

13,33,330

 

  To Securities Premium A/c

 

 

 

6,66,665

 

  To Bank A/c

 

 

 

5

 

(1,33,333 Equity Shares issued of  10 each at a premium of  Re 5 per share and shares 5 by bank draft)

 

 

 

 

 

 

 

 

 

 

 

Question 46:

Bhushan Lamp Ltd. issued 30,000 fully paid-up shares of 100 each for purchase of the following assets and liabilities from Sharma & Co:

Plant

  7,00,000

 Stock-in-Trade

 9,00,000

Land and Building

  12,00,000

 Sundry Creditors

  2,00,000

You are required to pass necessary Journal entries.

Answer:

Books of  Bharat Lamp Limited
Journal 

Date

Particulars

L.F.

Debit

()

Credit

 ()

 

 

 

 

 

 

Goodwill A/c

Dr.

 

4,00,000

 

 

Plant A/c

Dr.

 

7,00,000

 

 

Stock-in-Trade A/c

Dr.

 

9,00,000

 

 

Land and Building

Dr.

 

12,00,000

 

 

To Sundry Creditors A/c

 

 

2,00,000

 

To Sharma & Co

 

 

30,00,000

 

(Asset purchased and liabilities accepted from Sharma & Co)

 

 

 

 

 

 

 

 

 

Sharma & Co

Dr.

 

30,00,000

 

 

To Share Capital A/c

 

 

30,00,000

 

(30,000 shares of ₹100 each issued to Sharma & Co.)

 

 

 

 

 

 

 

 

 

Question 47:

Sandesh Ltd. took over the assets of  7,00,000 and liabilities of  2,00,000 from Sanchar Ltd. for a purchase consideration of 4,59,500.  8,500 were paid by accepting a draft in favour of Sanchar Ltd. payable after three months and the balance was paid by issue of  equity shares of 10 each at a premium of  10% in favour of  Sanchar Ltd.
Pass necessary journal entries for the above transactions in the books of Sandesh Ltd.

Answer:

Sandesh Ltd.

Journal 

Date

Particulars

L.F.

Debit

()

Credit

()

 

 

 

 

 

(i)

Sundry Assets A/c

Dr.

 

7,00,000

 

 

  To Sundry Liabilities A/c

 

 

 

2,00,000

 

  To Sanchar Ltd.

 

 

 

4,59,500

 

  To Capital Reserve A/c

 

 

 

40,500

 

(Purchase of  assets and liabilities of  Sanchar Ltd.)

 

 

 

 

 

 

 

 

 

 

(ii)

Sanchar Ltd.

Dr.

 

4,59,500

 

 

  To Equity Share Capital A/c

 

 

 

4,10,000

 

  To Securities Premium A/c

 

 

 

41,000

 

  To Bank A/c

 

 

 

8,500

 

(41,000 Equity Shares issued of  10 each at a premium of  Re 1 per share and 8,500 by bank draft)

 

 

 

 

 

 

 

 

 

 

 

Working Notes:


WN1: Calculation of  Number of  Equity Shares

Number of  shares issued= Purchase consideration/issue price=4,51,000/11=41,000

 

Question 48:

Sandesh Ltd. purchased a running business from Sanchar Ltd. for ₹15,00,000 payable 10% by cheque andthe balance by the issue of  fully paid Equity Shares of  ₹100 each at a premium of  20%. The assets andliabilities consisted of  the following:

Particulars

Book Value (₹)

Agreed Value (₹)

Building

5,00,000

6,50,000

Plant and Machinery

3,00,000

2,50,000

Stock

6,00,000

5,00,000

Trade Receivables

2,80,000

2,50,000

Trade Payables

1,80,000

2,00,000

Pass the necessary Journal entries in the books of  Sandesh Ltd.

Answer:

Journal

Date

Particulars

L.F.

Debit

(₹)

Credit

(₹)

 

Goodwill A/c

 Dr.

 

50,000

 

 

Building A/c

 Dr.

 

6,50,000

 

 

Plant and Machinery A/c

 Dr.

 

2,50,000

 

 

Stock A/c

 Dr.

 

5,00,000

 

 

Trade Receivables A/c

 Dr.

 

2,50,000

 

 

  To  Trade Payables A/c

 

 

 

2,00,000

 

  To  Sandesh Ltd.

 

 

 

15,00,000

 

(Being Business of  Sanchar Ltd at agreed values)

 

 

 

 

 

Sandesh Ltd.

Dr.

 

15,00,000

 

 

  To Bank  A/c

 

 

 

1,50,000

 

  To Share capital  A/c

 

 

 

11,25,000

 

  To Securities Premium Reserve

 

 

 

2,25,000

 

(Being Shares issued for purchase consideration of  business by issuing shares of ₹100 each at a premium of ₹20)

 

 

 

 

 

Ts Grewal Solution 2025-2026

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Class 12 / Volume – 2

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