Pc tulsian amalgamation group 2 problem help.

CA girl (Article Trainee-CA Final)   (1942 Points)

14 October 2012  

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 :)