AB & Co. is converted into a limited company but the same books of accounts are desired to be continued. The balance sheet with reference to which the conversion has taken place is given as follows:
|
Liabilities |
Assets |
||
|
Capital Accounts |
Machinery |
15,00,000 |
|
|
A 30,00,000 |
Car |
5,00,000 |
|
|
B 20,00,000 |
50,00,000 |
Stock |
25,00,000 |
|
Reserve |
5,00,000 |
Debtors |
19,00,000 |
|
Creditors |
10,00,000 |
Cash |
1,00,000 |
|
65,00,000 |
65,00,000 |
Goodwill is valued at Rs.12,50,000. Car is taken up by A at an agreed value of Rs.1,50,000. Stock and machinery are valued at Rs.27,50,000 and 17,50,000, respectively.
The partners are issued required number of shares of Rs.100 each at par. Pass journal entries and draft the Balance Sheet of the Limited Company.