Model: Preparation of balance sheet—Amalgamation in the nature of merger X Ltd. and Y Ltd. were amalgamated on and from 1 April 2011. A new company Z Ltd. was formed to take over the business of existing companies. The balance sheets of X Ltd. and Y Ltd. as on 31 March 2011 are shown in the following:
|
Liabilities |
X Ltd. |
Y Ltd. |
Assets |
X Ltd. |
Y Ltd. |
|
Share Capital: |
Fixed Assets: |
3,600 |
2,400 |
||
|
Equity Shares of Z100 |
1$00 |
1,200 |
Less: Depreciation |
600 |
450 |
|
Each |
|||||
|
10% Pref. Shares of Z100 |
900 |
600 |
3,000 |
1,950 |
|
|
Each |
Investments |
1200 |
450 |
||
|
Reserve & Surplus: |
Currents Assets: |
||||
|
Capital Reserve |
650 |
400 |
Stock |
900 |
450 |
|
General Reserve |
900 |
450 |
Debtors |
1,200 |
600 |
|
Profit & Loss A/c |
300 |
150 |
Cash & Bank Balance |
900 |
450 |
|
Secured Loans |
1200 |
600 |
|||
|
Trade Creditors |
900 |
300 |
|||
|
Tax Provision |
600 |
150 |
|||
|
7200 |
3,900 |
7,200 |
3,900 |
Other information:
- Preference shareholders of the two companies are issued equipment number of 12% preference shares of Z Ltd .
- Z Ltd. will issue one equity share of Rs.100 each for every share of X Ltd. and Y Ltd.
You are required to prepare the balance sheet of Z Ltd. on the assumption that the amalgamation is in the nature of merger.