Model: Preparation of balance sheet—Amalgamationby “pooling of interest” method V Ltd. and R Ltd. were amalgamated on and from 1 April 2011. A new company S Ltd. was formed to take over the business of existing companies. The balance sheets of V Ltd. and R Ltd. as on 31 March 2011 are given in the following:
|
Liabilities |
V Ltd. |
R Ltd. |
Assets |
V Ltd. |
R Ltd. |
|
Share Capital: |
|
|
Fixed Assets |
6,000 |
5,000 |
|
Equity Shares of Z 100 |
5,000 |
4,000 |
Current Assets Loans & |
4,400 |
1825 |
|
Each |
|
|
Advances |
|
|
|
10% Pref. Shares of Z 100 |
1000 |
1,500 |
|
|
|
|
Each |
|
|
|
|
|
|
Reserve & Surplus: |
SOO |
400 |
|
|
|
|
Revaluation Reserve |
|
|
|
|
|
|
General Reserve |
1,000 |
|
|
|
|
|
P&L A/c |
400 |
300 |
|
|
|
|
Secured Loan: |
|
|
|
|
|
|
12% Debentures of |
480 |
400 |
|
|
|
|
Rs. 100 Each |
|
|
|
|
|
|
Current Liabilities and |
1,020 |
475 |
|
|
|
|
Provisions |
|
|
|
|
|
|
|
10,400 |
7,825 |
|
10,400 |
7,825 |
Other information:
- 12% Debenture holders of V Ltd. and R Ltd. are discharged by S Ltd. by issuing adequate number of 16% debentures of Rs.100 each to ensure that they continue to receive the same amount of interest.
- Preference shareholders of V Ltd. and R Ltd. have received the same number of 10% preference shares of Rs.100 each of S Ltd.
- S Ltd. has issued 7.5 lakh equity shares for each equity share of V Ltd. and 5 lakh equity shares for each share of R Ltd. The face value of shares issued by S Ltd. is Rs.100 each.
Prepare the balance sheet of S Ltd. as on 1 April 2011, after the amalgamation has been carried out using the “pooling of interest method”.