Exe Ltd. Purchased assets of the books value ₹ 4,00,000 and took over the liabilities of ₹ 50,000 from Mohan Bros. It was agreed thet the purchaase consideration, settled at ₹ 3,80,000, be paid by issuing debentures of ₹ 100 each. It was agreed that any fraction of debentures be paid in cash.

Answer

Goodwill ₹ 30,000; Case (a) 3,800 Debentures of ₹ 100 each; Cash (b) 4,222 Debentures of ₹ 100 each and paid cash ₹ 20; Case (c) 3,454 Debentures of ₹ each and paid cash ₹ 60.