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प्रश्न
Following are the Balance Sheets of .X Ltd. and y Ltd :
Balance Sheet
as on 31st March1 , 2018
| Liabilities | XLtd,Rs | YLtd.Rs | Assets | XLtd,Rs | YLtd,Rs |
| EquityShareCapital of Rs. 10 each | 75,00,000 | 45,00,000 | Building | 25,00,000 | 15,50,000 |
| Export Profit Reserves | 3,00,000 | 3,00,000 | Machinery | 32,50,000 | 17,00,000 |
| Profit & Loss Alc | 7,00,000 | 6,00,000 | Stock | 25,50,000 | 18,00,000 |
| General Reserves | 200,000 | 4,50,000. | Debtors | 9,00,000 | 10,00,000 |
| 12% Debentures of Rs.100 each | 5,00,000 | 3,00,000 | Bank | 7,00,000 | 5,50,000 |
| Preliminary | - | 1,00,000 | |||
| Sundrv Creditors | 7,00,000 | 5,50,000 | Expenses | ||
| 99,00,000 | 67,00,000 | 99,00,000 | 67,00,000 |
z Ltd. was formed to acquire all assets and liabilities of x Ltd. and y Ltd. on the following terms :
1. Z Ltd. to have an authorized share capital of Rs.5 crores divided into 5,00,000 equity shares of 100 Rs each.
2. The business of both companies were taken over for a total price of Rs. 1.2 crores to be discharged by Z Ltd. by issue of equity shares of Rs .100 each at a premium of 20%.,
3. The shareholders of X Ltd. and Y Ltd. to get shares in Z Ltd. in the ratio of net assets values of their respective shares.
4. The debe~tures of both the companies to be converted into equivalent number of 14% debentures of Rs.100 each in Z Ltd. at a discount of 10%.
5. All the tangible assets of both the co.mpanies are taken over by Z Ltd .. at book values except Following :
| Assets | XLtd. | YLtd. |
| Building | 28,00,000 | 18,20,000 |
| Machinery | 31,50,000 | 16,00,000 |
6. Sundry Creditors of X Ltd. and Y Ltd. are . taken over at Rs.6,50,000 and Rs.5,00,000 respectively.
7. Statutory reserves are to be maintained for 3 years more.
You are required to
(i)Compute Purchase Consideration of X Ltd. and Y Ltd.
(ii) Pass Journal Entries in the books of Z Ltd.
(iii) Prepare Balance Sheet after amalgamation. Apply Purchase Method.
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उत्तर
Purchase Consideration and Settlement
| X Ltd. | X Ltd. | Y Ltd. | Y Ltd. | Total | |
| Rs. | Rs. | Rs. | Rs. | Rs. | |
| AssetsTaken Over: |
|||||
| Building | 28,00,000 | 18,20,000 | |||
| Machinery | 31,50,000 | 16,00,000 | |||
| Stock | 25,50,000 | 18,00,000 | |||
| Debtors | 9,00,000 | 10,00,000 | |||
| Bank | 7,00,000 | 5,50,000 | |||
| 1,01,00,000 | 67,70,000 | ||||
| Liabilities | |||||
| Taken Over: | |||||
| Debentures | 4,50,000 | 2,70,000 | |||
| Creditors | 6,50,000 | 11,00,000 | 5,00,000 | 7,70,000 | |
| NetAssets | 90,00,000 | 60,00,000 | 1,50,00,000 |
Purchase Consideration -(in ratio of 9 : 6)
X Ltd. `(1,20,00,000xx9)/15= Rs.72,00,00 `
y Ltd.`(1,20,00,000xx6)/15= Rs.48,00,000`
`= 1,20,00,000`
No.· of Shares (@ ' 120 each) ;
X Ltd.`(72,00,000)/120= 60,000`
YLtd. `(40,00,000)/120=40,000`
`1,00,000`
Journal of Z Ltd.
| Particulars | Dr. | Cr. | |
| 1 | Business Purchase Alc To Liquidator of X Ltd. To Liquidator of Y Ltd, (Being the p~rchase · of business as per agreement.... ) |
1,20,00,000 |
72,00,000 |
| 2 |
Building A/c To 12 % Debentures of X Ltd. A/c (Being the asset and liabilities, of X Ltd. taken |
28,00,000
|
4,50,000 |
| 3 |
Liquidator of X Ltd. To Equity Share Capital A/c (Being the Purchase consideration of X ·Ltd. discharged) |
72,00,000
|
60,00,000 |
| 4 |
12% Debentures ofX Ltd. A/c Discount on Issue of Debentures A/c To-14% Debentures A/c (Being the issue of 12% debentures to 14%debentureholders of X Ltd. ) |
4,50,000
|
5,00,000 |
| 5 |
Building A/c Machinery A/c Stock A/c Debtors A/c Bank A/c To 12% Debentures of Y Ltd. A/c To Sundry Creditors A/c To Business Purchase A/c To Capital Reserve A/c (Being the assets and Iiabilities of Y Ltd.taken |
18,20,000 16,00,000 18,00,000 10,00,000 5,50,000
|
2,70,000
5,00,000 48,00,000
12,00,000 |
| 6 |
Liquidator ·of Y Ltd. To Equity Share Capital A/c To Securities Premium A/c (Being the purchase consideration of Y Ltd. |
48,00,000
|
40,00,000 8,00,000 |
| 7 |
12% Debentures of Y Ltd. A/c Discount on Issue of Debentures A/c To 14% Debentures A/c (Being the issue of 14% debentures to 12% |
2,70,000 30,000
|
3,00,000 |
| 8 |
Amalgamation. Adjustment A/c To Export Profit Reserves A/c (X) To·Export Profit Reserves A/c (Y) (Being the statutory reserves retained) |
6,00,000
|
3,00,000 3,00,000 |
ZLtd.
Balance Sheet as on 1st April, 2018
| Particulars |
Notes No. |
Dr. | Cr. | |
| I. | Equity and Liabilities | |||
| 1 | Shareholders Funds | |||
| (a) Share Capital | 1 | 1,00,00,000 | ||
| (b) Reserves and Surplus | 2 | 56,00,000 | 1,56,00,000 | |
| 2 | Non-curreni Liabilities | |||
| Long Term Borrowings | 3 | 8,00,000 | ||
| 3 | Current ·Liabilities | |||
| Trade Payable | 4 | 11,50,000 | ||
| Total |
1,75,50.000 |
| Particulars | Notes No. | Dr. | Cr. | |
| 2. | Assets | |||
| 1. | Non-Current Assets | |||
| (a) Fixed Assets | 5 | 93,70,000 | ||
| (b) Other Non-current Assets | 6 | 6,80,000 | ||
| 2. | Current Assets | |||
| (a) Inventories | 7 | 43,50,000 | ||
| (b) Trade Receivables · | 8 | 19,00,000 | ||
| (c)Cash and Cash Equivalent | 9 | 12,50,000 | 75,00,000 | |
| Total | 1,75,50,000 |
NOTES TO·ACCOUNTS
| Rs. | ||
| 1. | Share Capital : | |
| Authorised : | ||
| 5,00,000. Equity Shares of Rs. 100 each | 5,00,00,000 | |
|
Issued and Subscribed 1,00,000 Equity Shares of Rs.100 each (All Shares are Issued or Consideration other than Cash) |
1,00,00,000 | |
| 2. | Reserves and Surplus | |
| Capital Reserve | 30,00,000 | |
| Export Profit Reserve | 6,00,000 | |
| Security Premium | 20,00,000 | |
| 56,00,000 | ||
| 3. | Long Term Borrowings : | |
| 14% Debentures | 8,00,000 | |
| 4. | Trade Payable : | |
| Sundry Creditors | 11,50,000 | |
| 5. | Tangible Assets : | |
| Building | 46,20,000 | |
| Machinery | 47,50,000 | |
| 6. | Other Non-Current Assets : | |
| Amalgamation Adjustment Ale | 6,00,000 | |
| Discount on Issue of Debentures | 80,000 | |
| 6,80,000 | ||
| 7. | Inventories : | |
| Stock | 43,50,000 | |
| 8. | Trade Receivables : | |
| Sundry Debtors | 19,00,000 | |
| 9. | Cash and Cash Equivalent : | |
| Bank Balance | 12,50,000 | |
