5.39Corporate Accountsfollows:Acquisition of BusinessRs. 2 per share on applicatitaken up and paid for. TheRecord the above transactionbalance sheet.LiabilitiesRs.Assets7.Bills payableCreditorsGeneral reserveCapital account:SaravananMurugan3,700 Bank12,650 Stock5,000DebtorsTypewriterFurniture43,450 MachineryGoodwill28,25015,200Hint. Assume that Final4. Manoj & Co. was formedSheet was as follows:Liabilities1064,800CreditorsCapitalThe company takes over assets and liabilities. The purchase considerationagreed at Rs. 40,830. Out of this Rs. 33,000 in equity shares of Rs. 100 each atpremium and for the balance cash is to be given. Anna Ltd. valued the stocktypewriter at 10% and 20% respectively less than the book values. Machinen avalued at Rs. 25,000.Give journal entries in the books of the purchasing company.(B.Com., Madurai, April 1989 adeThe purchase considerati(i) 2.800 equity2. Tamil Nadu & Co. which was run by Saravanan and Murugan was taken ovenAnna Ltd. on 31st Dec. 1985. The Balance Sheet of Tamil Nadu & Co. was​