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DPT-PU-2 Corporate Accounting 2016 MAY.[3] RP Co Ltd. was incorporated to acquire the
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assets of firm in exchange for 1,00,000 ordinary shares of Rs. 10 each and Rs. 50,000 in cash. The assets taken were as follows:- Freehold Premises Stock 5,00,000 1,50,000 4,80,000 Record the transaction in Journal of Company. (Marks 5) Plant of Machinery Ans. [Capital Reserve Rs. 80,000]​



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On the day of [Date of transaction], RP Co Ltd. executed a pivotal transaction to acquire assets from another firm. The acquisition was facilitated through the issuance of 100,000 ordinary shares valued at Rs. 10 each, along with a cash payment of Rs. 50,000. The assets acquired encompassed Freehold Premises valued at Rs. 5,00,000, Stock valued at Rs. 1,50,000, and Plant and Machinery valued at Rs. 4,80,000. In accordance with proper accounting procedures, the values of Freehold Premises and Stock were debited, while Plant and Machinery were credited. Additionally, the cash payment was duly recorded, and a Capital Reserve of Rs. 80,000 was established to account for the excess consideration over the fair value of net assets acquired.

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