The balance sheets of C Ltd. and D Ltd. as on 31 March 2011 are as follows:
|
(Rs.in Lakhs) |
|||||
|
Liabilities |
C Ltd. |
D Ltd. |
Assets |
C Ltd. |
D Ltd. |
|
Equity Shares of Rs. 10 Each |
200 |
400 234 44 22 |
Fixed Asset |
880 |
400 |
|
Reserves |
1,048 |
investments |
130 |
200 |
|
|
12% Debentures |
88 |
Current Assets |
322 |
26 |
|
|
Creditors |
64 |
Miscellaneous Expenditure |
68 |
74 |
|
|
1,400 |
700 |
1,400 |
700 |
Investments of C Ltd. represent 10,00,000 shares of D Ltd. Investments of D Ltd. are considered worth Rs.270 lakh.
D Ltd. is taken over by C Ltd. on the basis of the intrinsic value of shares in their respective books of account.
Prepare a statement showing the number of shares to be allotted by C Ltd. to D Ltd. and the balance sheet of C Ltd. after absorption of D Ltd.