R Ltd. and S Ltd. are two companies carrying on business in the same lines of activity. Their balance sheets as on 31 March 2011 are as follows:
|
Liabilities |
R Ltd. |
S Ltd. |
Assets |
R Ltd. |
S Ltd. |
|
Fully Paid Equity Shares of |
24,00,000 |
8,00,000 |
Land & Buildings |
4,00,000 |
— |
|
Rs. 10 Each |
Plant & Machinery |
28,00,000 |
I 2, ,00,000 |
||
|
General Reserve |
I 6,00,000 |
8,00,000 |
investments |
4,00,000 |
– |
|
Can wad I /Ian |
7400000 |
400000 |
Stork |
1600000 |
16000110 |
The two companies decided to amalgamate into T Ltd. The following further information is as follows:
- All assets and liabilities of the two companies are taken over
- Each share in S Ltd. is valued at Rs.25 for the purpose of amalgamation
- Shareholders of S Ltd. and R Ltd. are paid off by issue of sufficient number of equity shares of Rs.10 each in T Ltd. as fully paid at par
- Each share in R Ltd. is valued at Rs.15 for the purpose of amalgamation
Show the journal entries to close the books of both the companies.