Reference no: EM133008988

Question - Following are the Liabilities and Assets of M/s. Desai Bros. as on 31st March, 2016 Liabilities Rs. Assets Rs. Capital 42,500 Freehold Premises 25,000 Bank Loan 20,000 Furniture 3,500 Bills Payable 6,700 Motor Van 12,800 Creditors 10,800 Stock 13,200 Bills Receivable 5,400 Debtors 18,700 Cash 1,400 80,000 80,000 On the above date the entire business was taken over by Ding Dong Bell Ltd. The purchase consideration was paid as under: (i) 3,000 fully paid Rs. 10 shares. (ii) The balance in cash. While recording the assets, the company valued the premises and stock at 10% and 20% above their book values respectively. Find out purchase consideration and pass necessary Journal Entries in the books of the Ding Dong Bell Ltd., and show its Balance Sheet after take over of the business.