Problem.No.2(Amalgamation in the nature of merger-pooling of interest method -with statutory reserve) The following are the balance sheet of X Ltd. And Y Ltd., as on 31 st march 2005 Liabilities Share capital Equity shares of Rs.10 14 % preference shares of Rs.100 22,00,000|17,00,000 Furniture & fittings 5,75,000 3,50,000 General reserve Export profit Reserve (required under Income Tax Act) Investment Allowance Reserve (statutory) P& L A/c 13% debentures of Rs.100 Trade creditors Other current liabilities Rs. 25,00,000 15,50,000 50,00,000 30,00,000 Plant& machinery 32,50,000 17,00,000 Rs. Assets Land & building Rs. Rs. 5,00,000 3,00,000 2,50,000|Stock 7,00,000 5,00,000 12,50,000 9,50,000 9,00,000 10,30,000| 7,25,000 5,20,000 --Investments Sundry debtors -- 2,00,000 Cash and Bank 7,50,000 1,00,000| 5,00,000 5,00,000 4,00,000 3,50,000 2,00,000 1,50,000 99,00,000 66,00,000| 99,00,000 66,00,000 X' Ltd., is formed to take over X Ltd. and Y Ltd., for the following consideration. X Ltd. i) Issue of 4,80,000 equity shares of Rs.10 each of XY Ltd. At Par to the equity shareholders. ii) Issue of 15% preference shares of Rs.100 each of XY Ltd. To discharge the preference shareholders of X Ltd. At 10% premium. Y Ltd. i) Issue of 3,50,000 equity shares of Rs.10 each of XY Ltd. At Par to the equity shareholders. ii) Issue of 15% preference shares of Rs.100 each of XY Ltd. To discharge the preference shareholders of Y Ltd. At 10% premium. The debentures of X Ltd., and Y Ltd., Will be converted into equivalent number of debentures of XY Ltd. The statutory reserves are to be maintained for two more years. Close the books of X Ltd. And Y Ltd. And show the opening entries and balance sheet of XY ltd. On the assumption that the amalgamation is in the nature of merger.
Problem.No.2(Amalgamation in the nature of merger-pooling of interest method -with statutory reserve) The following are the balance sheet of X Ltd. And Y Ltd., as on 31 st march 2005 Liabilities Share capital Equity shares of Rs.10 14 % preference shares of Rs.100 22,00,000|17,00,000 Furniture & fittings 5,75,000 3,50,000 General reserve Export profit Reserve (required under Income Tax Act) Investment Allowance Reserve (statutory) P& L A/c 13% debentures of Rs.100 Trade creditors Other current liabilities Rs. 25,00,000 15,50,000 50,00,000 30,00,000 Plant& machinery 32,50,000 17,00,000 Rs. Assets Land & building Rs. Rs. 5,00,000 3,00,000 2,50,000|Stock 7,00,000 5,00,000 12,50,000 9,50,000 9,00,000 10,30,000| 7,25,000 5,20,000 --Investments Sundry debtors -- 2,00,000 Cash and Bank 7,50,000 1,00,000| 5,00,000 5,00,000 4,00,000 3,50,000 2,00,000 1,50,000 99,00,000 66,00,000| 99,00,000 66,00,000 X' Ltd., is formed to take over X Ltd. and Y Ltd., for the following consideration. X Ltd. i) Issue of 4,80,000 equity shares of Rs.10 each of XY Ltd. At Par to the equity shareholders. ii) Issue of 15% preference shares of Rs.100 each of XY Ltd. To discharge the preference shareholders of X Ltd. At 10% premium. Y Ltd. i) Issue of 3,50,000 equity shares of Rs.10 each of XY Ltd. At Par to the equity shareholders. ii) Issue of 15% preference shares of Rs.100 each of XY Ltd. To discharge the preference shareholders of Y Ltd. At 10% premium. The debentures of X Ltd., and Y Ltd., Will be converted into equivalent number of debentures of XY Ltd. The statutory reserves are to be maintained for two more years. Close the books of X Ltd. And Y Ltd. And show the opening entries and balance sheet of XY ltd. On the assumption that the amalgamation is in the nature of merger.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Transcribed Image Text:Problem.No.2(Amalgamation in the nature of merger-pooling of interest
method –with statutory reserve)
The following are the balance sheet of X Ltd. And Y Ltd., as on 31 st march
2005
Liabilities
Share capital
Equity shares of Rs.10
14 % preference shares of Rs.100 22,00,000 17,00,000 Furniture & fittings 5,75,000 3,50,000
General reserve
Export profit Reserve
(required under
Income Tax Act)
Investment Allowance Reserve
(statutory)
P & L A/c
13% debentures of Rs.100
Trade creditors
Other current liabilities
Rs.
25,00,000 15,50,000
50,00,000 30,00,000 Plant& machinery 32,50,000 17,00,000
Rs.
Rs. Assets
Rs.
Land & building
5,00,000
3,00,000 2,50,000 Stock
--Investments
7,00,000 5,00,000
12,50,000 9,50,000
9.00,000|10,30.000
7,25,000 5,20,000
Sundry debtors
2,00,000 Cash and Bank
7,50,000 1,00,000
5,00,000 5,00,000
4,00,000 3,50,000
2,00,000 1,50,000
99,00,000 66,00,000
99,00,000 66,00,000
XY Ltd., is formed to take over X Ltd. and Y Ltd., for the following
consideration.
X Ltd.
i) Issue of 4,80,000 equity shares of Rs.10 each of XY Ltd. At Par to the
equity shareholders.
ii) Issue of 15% preference shares of Rs.100 each of XY Ltd. To discharge
the preference shareholders of X Ltd. At 10% premium.
Y Ltd.
i) Issue of 3,50,000 equity shares of Rs.10 each of XY Ltd. At Par to the
equity shareholders.
ii) Issue of 15% preference shares of Rs.100 each of XY Ltd. To discharge
the preference shareholders of Y Ltd. At 10% premium.
The debentures of X Ltd., and Y Ltd., Will be converted into equivalent
number of debentures of XY Ltd. The statutory reserves are to be maintained
for two more years.
Close the books of X Ltd. And Y Ltd. And show the opening entries and
balance sheet of XY ltd. On the assumption that the amalgamation is in the
nature of merger.
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