Balance Sheet of X Ltd. as on 31 March 2011 is as follows:
|
(Rs. in Lakhs) |
|||
|
Liabilities |
|
Assets |
|
|
Share Capital: |
|
Fixed Assets |
415 |
|
2.5 lakh Shares of |
250 |
Current Assets |
345 |
|
Rs. 10 Each |
|
investments |
85 |
|
Capital Reserve |
50 |
Goodwill |
10 |
|
General Reserve |
180 |
|
|
|
Unsecured Loans |
110 |
|
|
|
Sundry Creditors |
210 |
|
|
|
Provision for |
55 |
|
|
|
Taxation |
|
|
|
|
|
855 |
|
855 |
X Ltd. is amalgamated with Y Ltd. as on 31 March 2011, on which date the balance sheet of Y Ltd. is as follows:
|
Liabilities |
|
Assets |
|
|
Share Capital: |
|
Fixed Assets |
800 |
|
40 lakh Shares of Rs.10 Each |
400 |
Current Assets |
840 |
|
General |
500 |
|
|
|
Reserve |
|
|
|
|
Secured Loans |
200 |
|
|
|
Sundry Credtors |
230 |
|
|
|
Provision for |
260 |
|
|
|
Tax |
|
|
|
|
Provision for |
50 |
|
|
|
Dividend |
|
|
|
|
|
1,640 |
|
1,640 |
For the purpose of amalgamation, the goodwill of X Ltd. is considered to be of no value. There are also arrears of depreciation in X Ltd. amounting to Rs.20 lakh. The shareholders in X Ltd. are allotted in full satisfaction of their claims, shares in Y Ltd. in the same proportion that the respective intrinsic values of the shares of the companies bear to each other.
Pass journal entries in the books of both companies to give effect to the above.