Calculation of PC

Piyush Sanghi (CA) (172 Points)

20 February 2011  

 

Liabilities side of vendor co. displays the following items:

Debentures Rs. 1,00,000

Trade Creditors Rs. 30,000

Loan from Bank Rs. 40,000

A) The Purchasing company agreed to take over the the assets of Rs. 3,45000 and to take over debentures.

B) The Purchasing company agreed to take over the the assets of Rs. 3,45000 and trade creditos. Other outside Liabilities were discharged by purchasing company at their book values.

Calculate the amont of Purchase Consideration in both the above cases. 

 Thanks..!!