Sure Ltd. purchased a running business from M/s. Rai Brothers for a sum of Rs. 15,00,000 payable Rs. 12,00,000 in fully paid shares of Rs. 10 each and balance through cheque.

The assets and liabilities consisted of the following:

  Plant and     Machinery  Rs. 4,00,000  Stock  Rs. 4,00,000
  Building  Rs. 4,00,000  Cash  Rs. 3,00,000
  Sundry Debtors  Rs. 3,00,000  Sundry Creditors  Rs. 2,00,000

You are required to pass necessary Journal entries in the company’s books.


Leave a Reply