Creditors

Long Term Debt

Capital (5)
Reserves

Cash
Inventories
Debtors
Shares of X
Plant
Inv in B's Shares

No. of shares

Balance sheet as on 1 st April 2010

A ltd
B ltd Standalone A
32,000
4,000
32,000
20,000
4,400
20,000
10,000
6,000
10,000
50,000
13,000
50,000
112,000

27,400

A ltd
50,000
9,800
30,000
15,200
7,000

B ltd
1200
11,000
2,200
0
13,000

112,000

27,400

2,000

1200

112,000

Consolidated B
36,000
24,400
10,000
50,000
0
120,400

31,000
9,800
30,000
15,200
7,000
19,000
112,000

32,200
20,800
32,200
15,200
20,000
0
120,400

Workign Note
Determination of PC
BV of shares of B

Investment is sub by assets and liab of the seller, so we do not add the investments.
I have not paid more as I have paid 19000 for the 19000 equity. So there is no goodwill.

19,000

Creditors
Long Term Debt
Capital (5)
Reserves
S Premium

Cash
Inventories
Debtors
Shares of X
Plant
Inv in B's Shares

No. of Shares

Balance sheet as on 1 st April 2010

A ltd
B ltd Standalone A
32,000
32,000
4,000
20,000
20,000
4,400
11,900
10,000
6,000
50,000
50,000
13,000
112,000

27,400

A ltd
50,000
9,800
30,000
15,200
7,000

B ltd
1200
11,000
2,200
0
13,000

112,000

27,400

2,000

1200

17100
131,000

50,000
9,800
30,000
15,200
7,000
19,000
131,000

Consolidated BS
36,000
24,400
11,900
50,000
17100
139,400

51,200
20,800
32,200
15,200
20,000
139,400

Discharge through shhares

Workign Note
Determination of PC
BV of shares of B

No. of shares to be issued:

market Price
Capital
Share Premium

19,000

380
50
1900
17100
19000

Balance sheet as on 1 st April 2010

A ltd
B ltd Standalone A
32,000
Creditors 32,000
4,000
20,000
Long Term Debt
20,000
4,400
10,000
Capital (5) 10,000
6,000
50,000
Reserves 50,000
13,000
112,000

27,400

112,000

A ltd
Cash
50,000
Inventories 9,800
Debtors
30,000
Shares of X 15,200
Plant
7,000
Goodwill
Inv in B's Shares
112,000

B ltd
1200
11,000
2,200
0
13,000

50,000
9,800
30,000
15,200
7,000

27,400

25,000
137,000

No. of shares2,000

1200

Consolidated B
36,000
24,400
10,000
50,000
0
120,400

32,200
20,800
32,200
15,200
20,000
6,000
0
126,400

PC
Equity Aquired
Goodwill

25000
19000
6000

Goodwill is visible only in the consolidated BS.