1.

The extract of the balance sheet of X Ltd and Y Ltd as at 31st March 2015, is as follows
Equities and Liabilities
Equity Share Capital Rs 10 each

X
3,00,000

Y
1,50,000

The two companies decide to amalgamate into a new company Z Ltd which will take over the assets and liabilities of
these cos at the following terms:
1. X Ltd- Holders of each share of Rs.30 each in the company would receive 6 eq shares of Rs 5 each fully paid up and
Rs 5 cash.
2. Y Ltd- Holders of each share of Rs15 each in the company would receive 12% preference shares of Rs 10 each fully
paid up and Rs 10 cash.
3. Liquidation expenses of the two companies stood at Rs 2,000 & Rs.1,000 respectively and paid by Z Ltd.
Calculate PC.
2. The extract of the balance sheet of X Ltd and Y Ltd as at 31st March 2015, is as follows
Equities and Liabilities
Equity Share Capital Rs 10 each
9% Preference Share Capital Rs 100 each
8% Debentures

X
2,10,000
90,000
60,000

Y
1,50,000
90,000

On 1st April, 2015, XY Ltd was formed by amalgamating both the companies on following terms:
X Ltd: 1) XY Ltd to issue 600- 10% debentures of Rs 100 each to debenture holders of X Ltd
2) Preference shareholders of X Ltd insisted for allotment of 900 11% pf shares of rs 100 each
3) Eq shareholders are to be allotted 10 equity shares of rs 10 at par for 7 equity shares.
Y Ltd: 1) The debenture holders of Y Ltd insisted that they should be allotted equity shares in XY Ltd and they were
allotted 9,000 equity shares of Rs 10 each.
2) The equity shareholder of Y Ltd will get:
a) 6 equity shares of XY at par for 5 shares held by them
b) a cash payment of Rs 2 per share of Y Ltd.
Calculate PC.
3. Following is the balance sheet of A Ltd as on 31.3.2015.
E and L
14,000 Equity shares of Rs 100 each
P and L A/c
10 % Debentures
Trade Payables
Bank OD
Bills Payable
Assets
Sundry Assets
Discount on Issue of Debentures
Preliminary Expenses

14,00,000
(50,000)
2,00,000
2,00,000
50,000
40,000
18,40,000
18,00,000
10,000
30,000
18,40,000

R Ltd agreed to takeover the business of A Ltd. Calculate PC under net assets method on the basis of following:
1. Market value of 75% of sundry assets is estimated to be 12% more than the book value and that of remaining 25% at
8% less than the book value.
2. The liabilities are taken over at book values.
3. There is an unrecorded liability of Rs 25,000.