Hello all, in the below problem while calculating the net assets for equity shareholders- Investments in Debentures for both the companies is taken as Rs.16,000....Please tell me how the amount of Rs. 16000 is arrived at??
Liabilites | X Ltd | Y Ltd | Assets | X Ltd | Y Ltd |
12% Debentures of Rs. 100 each | 200000 | 100000 | Investments | 345000 | 520000 |
Additional Information:
- Investments of X ltd represent the cost of 200, 12% debentures of Y ltd acquired at paid up value and the cost of 25000 shares of Y ltd.
- Investments of Y ltd include the cost of 200 12% debentures of X ltd acquire at paid up value. Other investments of Y ltd are considered worth Rs. 610000
Ps:
- It is given that it is calculated as - Current worth*200/No. of Debentures
- This problem is from PC TULSIAN's advanced accounting Group 2 book, Page No:7.6
Thanks in advance :)