On 1-4-2018 A Ltd and B Ltd were amalgamated into C Ltd based on the following balance sheet. A Ltd ($) 44,800 B Ltd ($) 35,000 1200 A Ltd ($) 16,000 10,000 B Ltd ($) Liabilities Paid up capital Assets Goodwill Buildings 6400 12,000 Creditors 1000 Reserve 1600 2400 Plant 8200 2000 P/L A/C 2200 800 Stock 8400 6600 Debtors 4600 8000 Cash 2400 4400 49,600 39,400 49,600 39,400 Additional particulars: a) Buildings of both companies to be written off by 105 b) Provide 5% RBDD on debtors of both the companies c) Goodwill to be valued at $ 9,300 and $ 3,000 d) The entire amount of purchase consideration was discharged by the allotment of shares. e) C Ltd. agrees to take over the remaining assets and liabilities at book value. f) C paid liquidation expenses $ 5,000 and $4,000 respectively as part of purchase consideration. Prepare necessary Ledger A/c's in the books of A Ltd. and BLtd.

On 1-4-2018 A Ltd and B Ltd were amalgamated into C Ltd based on the following balance sheet. A Ltd ($) 44,800 B Ltd ($) 35,000 1200 A Ltd ($) 16,000 10,000 B Ltd ($) Liabilities Paid up capital Assets Goodwill Buildings 6400 12,000 Creditors 1000 Reserve 1600 2400 Plant 8200 2000 P/L A/C 2200 800 Stock 8400 6600 Debtors 4600 8000 Cash 2400 4400 49,600 39,400 49,600 39,400 Additional particulars: a) Buildings of both companies to be written off by 105 b) Provide 5% RBDD on debtors of both the companies c) Goodwill to be valued at $ 9,300 and $ 3,000 d) The entire amount of purchase consideration was discharged by the allotment of shares. e) C Ltd. agrees to take over the remaining assets and liabilities at book value. f) C paid liquidation expenses $ 5,000 and $4,000 respectively as part of purchase consideration. Prepare necessary Ledger A/c's in the books of A Ltd. and BLtd.

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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