Model: When shares are held by both the companies in each other—Net assets method Following are the balance sheets of C Ltd. and D Ltd.:
|
Liabilities |
C Ltd. |
D Ltd. |
Assets |
C Ltd. |
D Ltd. |
|
Shares of Rs.10 Each Fully |
3,00,000 |
1,50,000 |
Sundry Assets |
12,00 000 |
6,00,000 |
|
Paid-up |
|||||
|
Reserves |
9,36,000 |
4,80,000 |
3,000 Shares in D Ltd. |
36,000 |
|
|
3,000 Shares in C Ltd |
30,000 |
||||
|
12,36,000 |
6,30,000 |
12,36,000 |
6,30,000 |
It was decided that C Ltd. will absorb D Ltd. You are required to compute the purchase consideration.