Sico Ltd. took over the assets of Rs 4,80,000 and liabilities of Rs 80,000 of Mittal Ltd. For a consideration of Rs 3,20,000. Rs 20,000 were paid by an acceptance in favour of Mittal Ltd. Payable after 3 months and the balance by issue of fully paid `8%` Preference Shares of Rs 100 each at a premium of `50%`. Pass the necessary Journal entries for the above transactions in the books of Sico Ltd.

Explanation

Working Note :
`{:(,"Rs"),("Total Amount payable","3,20,000"),("Less : B/P issued ","20,000"),(,ulbar(ul"3,00,000")):}`
`"Number of Pref. Shares issued "=(3,00,000)/(150)=2,000`