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PAPER 1 : ACCOUNTING

Share capital = 20,00,000 shares ` 10 each

27

200

Securities premium=20,00,000 shares ` 20 each 400

600

3,75,00,000/100 4 = 15,00,000 shares

Share capital = 15,00,000 shares ` 10 each
Securities premium = 15,00,000 shares ` 20 each

150

Amount of purchase consideration

2.

450

300
825

Calculation of number of debentures issued

10% Debentures of ` 100 each

600

` in lakhs
A Ltd.

B Ltd.

30

15

15% Debentures to be issued to maintain same amount of

interest:
Interest = ` 30,00,000 x 10% = ` 3,00,000
Value of 15% Debentures =

` 3,00,000
15

100

20

Interest = ` 15,00,000 x 10%

Value of 15% Debentures =
3.

Net assets taken over

` 1,50,000
15

10

100

` in lakhs
A Ltd.

B Ltd.

Assets taken over

Land and building

275

200

Plant and machinery

Investments

175
75

125
25

Inventory
Debtors

175
125

125
150

Bills receivable
Cash and bank

25
150

25
100

1,000

750

Debentures

20

10

Creditors
Bills payable

135
75

60
35

230

105

Less: Liabilities taken over

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