Question

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. ·

Answer 1

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