Examine how do you treat the following items when X Ltd. is merging with Y Ltd. on 1stJanuary 2023 on the assumption:A.Condition u/s 2(1B) and u/s 72A does not satisfyB. Condition u/s 2(1B) satisfy but conditions u/s 72A not satisfyC. Conditions u/s 2(1B) and u/s 72A are satisfiedOther Information of X Ltd.:(i) Business Profits (before adjusting losses and expenses)*60,000(ii) Expenses on merger*2,00,000(iii) VRS Compensation (Paid during 2020-21)*4,00,000(iv) Sale consideration of non-depreciable capital assets*20,00,00(v) Indexed cost of acquisition of non-depreciable capital assets*12,00,000(vi) Sale consideration of depreciable assets*10,00,000(vii) WDV of depreciable assets*7,00,000(viii) Non-speculation business loss relating to 1994-95*3,00,000(ix) Unabsorbed depreciation relating to 2020-211,50,000(x) Long term Capital loss relating to 2021-22*2,00,000Business profits of Y Ltd. (before adjusting losses and expenses) ₹30,00,000 and long termcapital gain of Y Ltd. (before adjusting losses) ₹3,00,000[7]

If both are not satisfied,X Ltd: (Rs)Business…

Examine how do you treat the following items when X Ltd. is merging with Y Ltd. on 1st January 2023 on the assumption: A. Condition u/s 2(1B) and u/s 72A does not satisfy B. Condition u/s 2(1B) satisfy but conditions u/s 72A not satisfy C. Conditions u/s 2(1B) and u/s 72A are satisfied Other Information of X Ltd.: (i) Business Profits (before adjusting losses and expenses) (ii) Expenses on merger (iii) VRS Compensation (Paid during 2020-21) (iv) Sale consideration of non-depreciable capital assets *60,000 *2,00,000 *4,00,000 *20,00,00 (v) Indexed cost of acquisition of non-depreciable capital assets *12,00,000 (vii) WDV of depreciable assets (ix) Unabsorbed depreciation relating to 2020-21 (x) Long term Capital loss relating to 2021-22 (vi) Sale consideration of depreciable assets (viii) Non-speculation business loss relating to 1994-95 *10,00,000 *7,00,000 3,00,000 1,50,000 2,00,000 Business profits of Y Ltd. (before adjusting losses and expenses) 30,00,000 and long term capital gain of Y Ltd. (before adjusting losses) ₹3,00,000 [7]

Examine how do you treat the following items when X Ltd. is merging with Y Ltd. on 1st January 2023 on the assumption: A. Condition u/s 2(1B) and u/s 72A does not satisfy B. Condition u/s 2(1B) satisfy but conditions u/s 72A not satisfy C. Conditions u/s 2(1B) and u/s 72A are satisfied Other Information of X Ltd.: (i) Business Profits (before adjusting losses and expenses) (ii) Expenses on merger (iii) VRS Compensation (Paid during 2020-21) (iv) Sale consideration of non-depreciable capital assets 60,000 2,00,000 4,00,000 20,00,00 (v) Indexed cost of acquisition of non-depreciable capital assets 12,00,000 (vii) WDV of depreciable assets (ix) Unabsorbed depreciation relating to 2020-21 (x) Long term Capital loss relating to 2021-22 (vi) Sale consideration of depreciable assets (viii) Non-speculation business loss relating to 1994-95 10,00,000 *7,00,000 3,00,000 1,50,000 2,00,000 Business profits of Y Ltd. (before adjusting losses and expenses) 30,00,000 and long term capital gain of Y Ltd. (before adjusting losses) ₹3,00,000 [7]

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Concept explainers

Consolidation

Consolidation in general examination implies an asset oscillating between well-defined methods of trading status. Consolidation is commonly known as market indecisiveness, which completes when the asset's values move forward or backward the trading structure.

Question

Examine how do you treat the following items when X Ltd. is merging with Y Ltd. on 1st
January 2023 on the assumption:
A.
Condition u/s 2(1B) and u/s 72A does not satisfy
B. Condition u/s 2(1B) satisfy but conditions u/s 72A not satisfy
C. Conditions u/s 2(1B) and u/s 72A are satisfied
Other Information of X Ltd.:
(i) Business Profits (before adjusting losses and expenses)
*60,000
(ii) Expenses on merger
*2,00,000
(iii) VRS Compensation (Paid during 2020-21)
*4,00,000
(iv) Sale consideration of non-depreciable capital assets
*20,00,00
(v) Indexed cost of acquisition of non-depreciable capital assets
*12,00,000
(vi) Sale consideration of depreciable assets
*10,00,000
(vii) WDV of depreciable assets
*7,00,000
(viii) Non-speculation business loss relating to 1994-95
*3,00,000
(ix) Unabsorbed depreciation relating to 2020-21
1,50,000
(x) Long term Capital loss relating to 2021-22
*2,00,000
Business profits of Y Ltd. (before adjusting losses and expenses) ₹30,00,000 and long term
capital gain of Y Ltd. (before adjusting losses) ₹3,00,000
[7]

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