—1LLUSTRATIONy sist March. 2014: Liabilities ¥ Following is the statement of assets and liabilities of X Co. Ltd. as on ee Assets < 12.000 shares of T 10 each Land and Buildings 90,000 fully paid up 1,20,000 | Machinery 50,000 Sundry Creditors 30,000 | Stock 17,000 Rank Overdraft 28,000 | Sundry Debtors 20,000 Discount on Shares 1,000 The company went into voluntary liquidation and the assets were sold to Y Co. Ltd. for 7 1.50,000 payable as to = 60,000 in cash (which sufficed to discharge creditors and Bank Overdraft and pay the winding expenses of = 2,000) and as to ~ 90,000 by the allotment of 7 12.000 shares of £ 10 each of Y Co. Ltd, = 7.50 per share paid up, to the shareholders of X Co. Ltd. Draw up the Journal Entries and the necessary Ledger Accounts to close the books of X Co. Ltd. and the Journal Entries for recording these transactions in the books of Y Co. Ltd. on the basis of amalgamation in the nature of purchase.FAL vfwhet a) a iia To Cath afc. S¢,00 0 ey petal hey Coleg Bas onf Koala ten Je ds 2200 To Caeh Bank ae 200D ate £00 ale _ 2) eco cies et 7G 000 a Heute £2 oa) — ho sl & 1000 © Dutounl oe laanee BOO 4900 — Lace | li [20, 0c 120,000Kosh oe —-— 76.0 “= 175 slemee cs Vee Ye % (ieey clase cecesried fern Yeo Lid? a fetal patina 9 sas 4aia SS Je ve lid pong fasias iia dinilte i asctsitngmnicw ia | . ae \7¢, 000 by ses seclslling. _ 76,000 — [Fg0e0a : | | Legsudeloy of A CLM a fel $80,009 7 Been To hake capa af Ss a a sh seis. tash ]bavk afc iecos ___$6, 0p heeeg LLL of 10000 Lb iano¢ bz Pome a 220 paitarys oil Ge, 000/ — cael pad =12. Liabilities and assets of A Ltd. and B Ltd. are as under : Liabilities Assets Share Capital of € 100 each Capital Reserve General Reserve Development Rebate Reserve z Goodwill _ Plant & Machinery 6.50.000 Building 6.00.000 Furniture 10,000 Stock 3,380,000 Debtors 2.30,000aiGAMATION AND EXTERNAL RECONSTRUCTION 0/1-53 Surplus Alc 1.20.000 | Cash & Bank Bali r ohe: 2 ‘arance 96.9 6% Debentures — | Expenses on New 1.90.00 Creditors 2.40.000 Projects A Lid. was absorbed by B Ltd. on Ist April, 2013 on the terms given below . (a) Fixed assets other than goodwill to be val ued at % 5,00,000 including 2 6.000 for furnit (b) Stock to be reduced by % 20,000 and debtors by 5%. snus ic) B Ltd. to assume liabilities and 6% debentures. (d) The new project to be valued at % 95,000. (e) The shareholders of A Ltd. to receive cash Payment of & 30 per share plus four Ordinary shares in B Lid. for every five shares held, () B Ltd. to pay the liquidation expenses of A Ltd. amounting to 6,000. Draft the Journal entries in the books of B Ltd. and A Ltd. taking amalgamation in the nature of Purchase and prepare Balance Sheet of B Ltd. after ab: sorption, Development Rebate Reserve of A Lid. is to be continued in the books of B Ltd. Ans, (Purchase Consideration = 5,50,000; Loss on Realisation Z 60,000 ; Balance Sheet & 2,87.500]. 13. Following are the liabilities and assets of Ankur Ltd. as on 31 et March 2012er om 7) 007 Time err t 900 rosy =e eps OL ———fooase pay “are ar sore) OL vas i a! ‘ tel BALES DOArAe af < {f. Te Ahascboblese af shh £0,000Sat Pé,M HIWUOOO Wacol Mee ele a dese etees ey 92,000 £11000 - — | Te poo yaad Nee ___=__ 7900 [} . = | Joon 0 ( 4 AP tion ( 0, 000 U Ito AYR ale 0.00ee ees ae —D) | Gerson Maal sna a Sook3_— 0,000 v= fe ES) +420,000 | Baas