Answer:
Step-by-step explanation:
At Par (₹100 each):
Latha Limited pays ₹54,00,000 in cash to acquire Aadhira.
The entry would be:
Dr. Business Acquisition (Goodwill) ₹54,00,000
Cr. Cash ₹54,00,000
At Premium (20%):
If Latha Limited pays a premium of 20%, the total consideration would be: ₹54,00,000 + 20% = ₹64,80,000
The entry would be:
Dr. Business Acquisition (Goodwill) ₹64,80,000
Cr. Cash ₹64,80,000
At Discount (10%):
If Latha Limited pays at a discount of 10%, the total consideration would be: ₹54,00,000 - 10% = ₹48,60,000
The entry would be:
Dr. Business Acquisition (Goodwill) ₹48,60,000
Cr. Cash ₹48,60,000