The balance sheet of Govind Ltd. as on 31 December 2010 is given as follows:
|
Liabilities |
Assets |
||
|
Share Capital: |
Land |
3,25,000 |
|
|
5,000 Shares of |
5,00,000 |
Machinery |
1,10,000 |
|
7100 Each Fully |
Furniture |
15,000 |
|
|
Paid up |
Stock |
1,25,000 |
|
|
8% Debentures |
2,00,000 |
Debtors |
75,000 |
|
Creditors |
30,000 |
Cash |
20,000 |
|
Profit & Loss A/c |
60,000 |
||
|
7,30,000 |
7,30,000 |
Khan Company Ltd. was formed to take over the business of Govind Ltd. With a nominal capital of Rs.5,00,000 divided into 2,500 9% preference shares of Rs.100 each and 2,500 equity shares of Rs.100 each on the following basis:
- The debenture holders in Govind Ltd. are to accept 1,750 preference shares
- The shareholders in Govind Ltd. are to receive one equity share in Khan Ltd. for every two shares held by them
- Cost of liquidation met by Khan Ltd. was Rs.3,000
- The balance of preference shares has been issued which are taken up by the public
Give important ledger accounts to close the books of Govind Ltd. and journal entries in the books of Khan Ltd.