Amalgamation IV B Com .Following are the Balance Sheets of ROHAN Ltd. and SOHAN Ltd. as on 31-3-2010.

Liabilities ROHAN Ltd. Rs. SOHAN Ltd. Rs. Assets ROHAN Ltd. Rs. SOHAN Ltd. Rs. 1, 50,000 7, 50,000 6, 00,000 4, 50,000 1, 50,000

Share Capital 9% Preference Shares Of Rs. 100 each Equity shares Of Rs. 100 each Reserves & Surplus: General Reserves Revaluation Reserves Export Profit Reserves Profit & Loss Account Secured Loans: 12% Debentures Of Rs. 100 each Unsecured Loans Current Liabilities & Provisions: Sundry Creditors Bills payable

6, 00,000 9, 00,000 75,000 45,000 30,000 15,000

9, 00,000 15, 00,000 90,000 60,000 45,000 30,000

Fixed Assets: Goodwill Land & Building Plant & Machinery Computer Investments: Current Assets, Loans & Advances Stock Sundry Debtors Bills receivables Bank

1, 50,000 6, 00,000 4, 50,000 3, 00,000 1, 50,000

3, 00,000 4, 50,000 1,50,000 3,00,000 75,000 1,50,000 1, 95,000 3,75,000

3,00,000 1, 50,000 2, 25,000 30,000 23,70,000

4, 50,000 75,000 1, 80,000 45,000 33,75,000

23,70,000 33,75,000

Mohan Ltd. was formed to take over the business of Rohan Ltd. and Sohan Ltd. with an authorized share capital of Rs. 30,00,000 consisting of 20,000 13% Preference Shares of Rs. 100 each and 100,000 Equity Shares of Rs. 10 each. Terms of Amalgamation :1. 2. 3. 4. 9% Preference shareholders of both the companies are issued equal number of 13% Preference shares of Mohan Ltd. at a price of 125 each. Mohan Ltd. will issue four Equity shares for three Equity shares of Rohan Ltd. and four Equity shares for five Equity shares of Sohan Ltd. The shares are to be issued at Rs. 35 each. 12% Debenture holders of both the companies are discharged by Mohan Ltd. by issuing such number of its 15% Debentures of Rs. 100 each so as to maintain the same amount of interest. Mohan Ltd. agree to take over all assets and all liabilities at book values except the following (i) Tangible fixed assets at 10% more than book-values (ii) Investments and Sundry Debtors at 90% of their book values. 5. Export Profit Reserves are to be maintained for three more years.

You are required to (i) Compute purchase consideration of Rohan Ltd. and Sohan Ltd. (ii)Pass Journal entries and Prepare Balance Sheet after amalgamation in the books of Mohan Ltd.

Amalgamation IV B Com

Shubha Ltd. absorbed Sushma Ltd. with effect from 1st April, 2011 when their Balance sheets as on 3103-2011 were as under: Liabilities Share Capital: 10% Preference Share of Rs. 100 each Equity Share of Rs. 100 each Reserves & Surplus: Revaluation Reserves Export Profit Reserves General Reserve Secured Loans 10% Debentures of Rs. 100 15% Debentures of Rs. 100 Current Liabilities & Provisions Sundry Creditors Shubha Ltd.Rs. Sushma Ltd .Rs. Assets Fixed Assets Shubha Sushma Ltd.Rs. Ltd.Rs.

2,00,000 5,00,000 20,000 40,000 2,00,000

2,00,000 2,00,000 -20,000 60,000 1,20,000

Land & Building Plant & Machinery Current Assets, Loans & Advances Stock Sundry Debtors Bills Receivable

2,20,000 1,40,000 4,20,000 2,60,000

2,90,000 1,60,000 1,20,000 1,40,000 1,30,000 90,000 20,000 10,000

80,000

--

1,60,000 12,00,000

2,00,000 8,00,000

12,00,000 8,00,000

Terms Of Amalgamation: Shubha Ltd. will issue Eight equity shares for Five equity shares in Sushma Ltd. Preference shareholders of Sushma Ltd. will be issued equal number of Equity shares in Shubha Ltd. 3. 10% Debentureholders of Sushma Ltd. Are discharged by Shubha Ltd by issuing equal number of its 15% Debentures of Rs. 100 each. 4. All the Assets and liabilities of Sushma Ltd are taken over at book values except the following. (i)Fixed Assets at 10% more than book values. (ii)Stock at Rs. 1,44,000 (iii)Debtors at Rs. 1,25,000 (iv)Bills Receivables at Rs. 81,000 1. 2.

You are required to(a).Compute Purchase consideration.( b).Prepare Ledger Accounts to close the books of Accounts of Sushma Ltd. (c).Pass journal entries and prepare Balance-sheet after Amalgamation in the books of Shubha Ltd.

BK Ltd. is formed to takeover 'Bunty Ltd and Kuber Ltd'. Their Balance Sheets on the date of amalgamation are as below: Liabilities Share Capital of Rs.10 each Bunty.. Kuber Assets Goodwill Buildings Bunty Kuber ---25,000 1,50,000 1,40,000

Equity shares 11% Preference Shares General Reserve Profit & loss A/C 9% Debentures Sundry Creditors Other Liabilities

2,40,000 1,50,000 45,000 30,000 1,00,000 60,000 40,000

1,60,000 Machinery 1,00,000 Furniture 40,000 21,000 1,00,000 40,000 24,000 Investments Debtors Stock Cash & Bank Other Current Assets Preliminary Expenses

80,000 10,000 1,40,000 1,65,000 75,000 13,000 20,000 12,000

60,000 5,000 80,000 60,000 90,000 8,000 10,000 7,000

6,65,000

4,85,000

6,65,000 4,85,000

.Bunty Ltd. and Kuber Ltd. were taken over by BK Ltd. on the following terms.

Re: Bunty Ltd. Equity Shareholders are to be issued 7 Equity Shares of Rs. 10 at par in BK Ltd. and are to be paid Rs.5 in cash for each 6 Shares. 2. Preference shareholders are to be paid at 10% premium by 12.5% preference shares in BK Ltd. issued at par. 3. All Assets and liabilities are valued at book value except Machinery which is valued at 10% below book value and Debtors are worth Rs. 1,60,000. 4. Liquidation expenses of Rs.12,500 are to be borne by BK Ltd. Re: Kuber Ltd. 1. Cash Rs.3,000 is to be retained for liquidation expenses. 2. Debtors and investments are valued at 90% of cost. 3. Machinery and stock are valued at 10% above cost and other assets and liabilities are valued at book value except Fictitious assets. 4. Prefrence shareholders are to be paid at 10% premium by 12.5% prefrence shares in BK Ltd. issued at par. 5. Balance of Purchase consideration is payable,in equity shares at par. The Face value of Equity shares and preference shares in BK Ltd. is of Rs.10 each. 1.

BK Ltd. issued 10,000 equity shares of Rs.10 each to the public at a premium of 10% to meet the cost of purchase consideration Show the necessary Ledger Accounts in the books of 'Bunty Ltd' and Kuber Ltd'. after calculating purchase consideration

4. Following are the Balance Sheets of X Ltd. and Y Ltd. Liabilities Equity Share Capital of Rs. 10 each Export Profit Reserves Profit and Loss Account General Reserve 12% Debenture of Rs. Balance Sheets As on 31st March, 2006 X Ltd. Y Ltd. Assets Rs. Rs. 75,00,000 3,00,000 7,00,000 2,00,000 5,00,000 45,00,000 Building 3,00,000 Machinery 6,00,000 Stock 4,50,000 Debtors 3,00,000 Bank X Ltd. Rs. Y Ltd. Rs.

25,00,000 15,50,000 32,50,000 17,00,000 25,50,000 18,00,000 9,00,000 10,00,000 7,00,000 5,50,000

100 each Sundry Creditors 7,00,000 99,00,000 5,50,000 67,00,000 Preliminary Expenses 1,00,000

99,00,000 67,00,000

Z Ltd was formed to acquire all assets and liabilities of X Ltd. and Y Ltd. on the following terms: 6. 7. Z Ltd. to have an authorised share capital of Rs. 5 crores dividend into 5,00,000 equity shares of Rs. 100 each.

The business of both companies were taken over for a total price of Rs. 1.2 crores to be discharged by Z Ltd. by issue of equity shares of Rs. 100 each at a premium of 20%. 8. The shareholders of X Ltd. and Y Ltd. to get shares in Z Ltd. in the ratio of net assets values of their respective shares. 9. The Debentures of both the companies to be converted into equivalent number of 14% Debentures of Rs. 100 each in Z Ltd. at a discount of 10%. 10. All the tangible assets of both the companies are taken over by Z Ltd. at book values except the following: Assets X Ltd. Y Ltd. Rs. Rs. Building 28,00,000 18,20,000 Machinery 31,50,000 16,00,000 11. Sundry creditors of X Ltd. and Y Ltd. are taken over at Rs. 6,50,000 and Rs. 5,00,000 respectively. 12. Statutory Reserves are to be maintained for 3 years more.You are required to: (i) Compute Purchase consideration of X Ltd. and Y Ltd. (ii) Pass Journal Entries in the Books of Z Ltd. (iii) Prepare Balance Sheet after amalgamation 5. A' Ltd. absorbed 'B' Ltd. w.e.f. 1st April, 2007 when their Balance sheets were as under:Balance Sheet as on 31st March 2007 'A' Ltd. 'B' Ltd. Assets Rs. Rs. Land and Building 10,00,000 4,00,000 Plant and Machinery Stock 4,00,000 4,00,000 Sundry Debtors 40,000 - Bills receivables 3,00,000 1,00,000 Bank 80,000 40,000 1,00,000 20,000 1,60,000 2,40,000 3,20,000 4,00,000 24,00,000 16,00,000

Liabilities Equity Shares of Rs. 10/- each fully paid 11% Preference shares of Rs. 100/- each fully paid Revaluation Reserves General Reserve Export Profits Reserves Other Statutory Reserves 15% Debentures 10% Debentures Sundry Creditors Terms of Absorption 1. 2. 3. 4.

'A'Ltd. 'B'Ltd. Rs. Rs. 4,40,000 2,80,000 8,40,000 5,20,000 5,80,000 3,20,000 2,40,000 2,80,000 2,60,000 1,80,000 40,000 20,000

24,00,000

16,00,000

'A' Ltd. will issue Eight Equity shares for every Five Equity shares in 'B' Ltd. of Rs. 10 each at Rs. 11 per share. 11 % Preference shareholders of 'B' Ltd. will be issued equal number of preference shares in A Ltd. of Rs. 100/- each at Rs. 105 per share. 'A' Ltd. agreed to take over the debentures of 'B' Ltd. at book value. Subsequently after absorption, 10% debenture holders of 'B' Ltd. are discharged by 'A' Ltd. issung such number of its 15% debentures of Rs. 100/- each so as to maintain the same of amount of interest. All the assets and liabilities of 'B' Ltd. were taken over at book values except the following which were revalued as follows Land and Building 3,00,000 Plant and Machinery 5,00,000 Stock 3,00,000 Sundry Debtors 2,60,000 Bills receivables 1,60,000

5. 6. 7.

Sundry Creditors 3,80,000 Cost of absorption amounting to Rs. 10,000/- was paid by 'A' Ltd. Creditors of 'B' Ltd. include Rs. 10,000/- payable to 'A' Ltd. It was decided by the directors of 'A' Ltd. to set off Goodwill and Capital Reserves mutually.

You are required to : Compute Pruchase Consideration of 'B' Ltd.Pass Journal entries in the books of 'A' Ltd. Prepare Balance sheet after absorption of 'A' Ltd.