On 31 March 2011, the following was the balance sheet of Coral Ltd.
|
Liabilities |
Assets |
||
|
60,000 Equity |
6,00,000 |
Plant |
4,50,000 |
|
Shares ofRs. 10 |
& Machinery |
||
|
Each |
Furniture & |
75,000 |
|
|
Capital Reserve |
10,000 |
Fixtures |
|
|
Loan |
1,80,000 |
Stock |
2,00,000 |
|
Sundry |
1,50,000 |
Sundry Debtors |
1,10,000 |
|
Creditors |
Cash at Bank |
50,000 |
|
|
Profit & Loss A/c |
55,000 |
||
|
9,40,000 |
9,40,000 |
A new company Ruby Ltd. was incorporated which took over fixed assets and stock of Coral Ltd. for Rs.6,30,000 payable as to Rs.4,50,000 in the form of 90,000 equity share of Rs.5 each and Rs.1,80,000 in the form of 1,800 12% mortgage debentures of Rs.100 each. Loan creditors accepted the debentures of Ruby Ltd. in discharge of the loan. Sundry Debtors realized Rs.1,02,500. Expenses of liquidation amounted to Rs.4,000 and were met by Coral Ltd. The available cash was distributed among sundry creditors in full satisfaction of their claim.
Close the book of Coral Ltd. and draw initial balance sheet of Ruby Ltd.