Paper1-amalgamation-doubt

Jasmin (student) (185 Points)

08 January 2010  

Hi,

Someone pls help me with this Q. in pg 6.25 of paper1 study material..

B/S of X ltd

Liabilities:

capital(Rs100each fully paid)  4,00,000

General reserve 80,000

p&l a/c 38,000

workmen's compensation reserve (expected liab Rs8000) 15,000

Fire insurance fund 60,000

Creditors 70,000

Provision for tax 50,000

Total: 713000

 

Assets:

G/W 80,000

L&B 1,10,000

P&M 2,50,000

stock 90,000

book debts 50,000

underwriting comm 10,000

prepaid exp 5,000

cash at bank 1,18,000

Total: 713000

 

The company is taken over by Y ltd. Determine the PC in each of the foll.

  1. Each shareholder is paid at Rs20 in cash and is issued shares of Rs100 each, valued at Rs120 for every 5 shares held; all assets & liabilities taken over
  2. Each share in X ltd. is valued at Rs150, the PC is to be discharged in the form of shares in Y ltd valued at Rs200(entries to be made at par value)

[Ans: 1. 656000, 2. 300000]

 

Pls show the calculation....thanks in advance.