Professional Documents
Culture Documents
Amalgamations
or
ns
Computation of
Purchase
consideration
of
n
a
National Company LTD was incorporated on 1st July 2004 for purpose of acquiring M LTD , N LTD and O Ltd .
a
The Balancesheets of These Companies are as follows
Liabilities
Issued equity Share capital 400000 500000 250000
P&L A/c 150000 110000 60000
10% Debentures 70000 40000
Sundry Creditors 80000 130000 35000
Total 700000 740000 385000
2. The Acquisition agreement provides for the issue of 12% unsecured debentures to the value of net assets of
companies M Ltd , N Ltd & O Ltd and for the issuance of Rs. 10 Nominal value equity shares for the capitalized
average profit of each acquired company in excess of net assets contributed . The capitalization rate is Established
at 10%
Assets
Tangible Assets 620000 480000 360000
Other Assets 30000 280000 85000