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Roopa Ltd .Took Over the Business of Sonali Ltd . 1st April, 2018 at Book Value. Following is the Summarised Balance Sheet of Sonali Ltd, as on 31-3-2018 - Financial Accounting(Financial Accounting and Auditing 9)

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Roopa Ltd .took over the business of sonali Ltd . 1st April, 2018 at book value. Following is the summarised Balance sheet of sonali Ltd, as on 31-3-2018

Liabilities Rs. Assets Rs
80,000 Equity Shares of Rs 10/- each 8,00,000 Plant & Machinery 5,00,000
General Reserve 4,00,000    
Profit & Loss Account 2,00,000 Furniture & Fixtures 4,50,000
Creditors 2,00,000 Motor Vehicles 1,00,000
    Investments 1,00,000
    Stock 1,00,000
    Debtors 2,00,000
    Cash & Bank Balance 50,000
    Preljminary Expenses 1,00,000
  16,00,000   16,00,000

Roopa Ltd. issued one equity share of Rs. 10/- per each at a premium of Rs. 2 per share for every share in Sonali Ltd.

Calculate Purchase Consideration and also prepare Balance Sheet of Roopa Ltd. after acquisition. Acquisition is in the nature of Purchase. ·

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Solution

Purchase Consideration

  Rs.
80,000 Equity Shares of Rs. 10 each at a Premium of Rs. 2 per Share (80,000 X Rs 12) 9,60,000

Roopa Ltd.
Balance sheet as at 31.3.2018

  Particulars

Note
no.

Dr. Rs. Cr. Rs.
1. Equity and Liabilities      
1. Shareholders Funds      
  (a) Share Capital   8,00,000  
  (b) Reserves and Surplus   5,00,000 13,00,000
2. Current Liabilities      
  Trade Creditors     2,00,000
  Total     15,00,000
2. Assets      
1. Non-Current Assets      
  (a) Fixed Assets      
  Tangible Assets   10,50,000  
  (b) Non-Current Investment   1,00,000 11,50,00Q
2. Current Assets      
  (a) Inventories   10,50,000  
  (b) Trade Receivables   2,00,000  
  (c) Cash and Cash Equivalent   50,000 3,50,000
         
  Total     15,00,000

Notes to Accounts

     
1. Share Capital  
  Issued & Subscribed 80,000 Equity Shares of Rs.10each 8,00,000
2. Reserves & Surplus  
  Security Premium 1,60,000
  Capital Reserve 3,40,000
    5,00,000
3. Trade Payables  
  Creditors 2,00,000
4. Tangible Assets  
  Plant & Machinery 5,00,000
  Furniture and Fixtures 4,50,000
  Motor Vehicles 1,00,000
    10,50,000
5. Non-Current Investments  
  Investments  
6. Inventories  
  Stock 1,00,000
7. Trade Receivables  
  Debtors 2,00,000
8. Cash and Cash Equivalent  
  Cash and Bank Balance 50,000
Concept: Absorption
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