Leela Co Ltd. decided to reconstruct and went into liquidation with the following assets and liabilities:
|
Liabilities |
Rs. |
Assets |
Rs. |
|
Reference Share |
4,00,000 |
Fixed Assets |
9,98,400 |
|
Capital of Rs. 10 |
Stock |
1,47,000 |
|
|
Each |
Debtors |
2,62,000 |
|
|
Equity Share |
16,00,000 |
Cash |
800 |
|
Capital of Rs.10 |
Profit & Loss A/c |
8,25,400 |
|
|
Each |
|||
|
General Reserve |
24,200 |
||
|
Bank Loan |
37,200 |
||
|
Creditors |
1,72,200 |
||
|
22,33,600 |
22,33,600 |
A new company called Mala Co Ltd. was formed to acquire the fixed assets and stock of Leela Co Ltd. at Rs.6,80,000 and Rs.1,20,000, respectively. The purchase price is to be paid by issue of 10% preference shares and equity shares of Rs.10 each for equal amounts.
Debtors realized Rs.2,45,500 and creditors were paid Rs.1,62,680 in full satisfaction. Bank loan was paid in full. The expenses of liquidation came to Rs.21,420.
Close the books of Leela Co Ltd. and give the balance sheet of Mala Co Ltd.