Bangalore University 2008-4th Sem B.Com English
Friday, 22 March 2013 08:00Web
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c) Hi Ltd., to problem 16,000 equity shares of Rs.10 every
d) Hi Ltd., to problem 14,000 equity shares of Rs.10 every at a premium if 20% and pay cash at Rs.10 per share to the shareholders of I Ltd.
e) Immediately after amalgamation Hi Ltd., to problem Rights shares to the existing shareholders in the ratio of 2:1. These shares are issued at a premium of 60%.
Pass Journal entries and show Balance Sheet in the books of “Hi Ltd”.
11. Following is the Balance Sheet of J Ltd., as at 31-03-2008
Liabilities Rs. Assets Rs.
Equity Share Land and Buildings 2, 00,000
Capital (Rs.10 each) 5, 00,000 Plant and Machinery 1, 75,000
12% Preference Share Furniture 45,000 Capital (Rs. 100 each) 2, 00,000 Investstments 60,000
General Reserve 1, 50,000 Stock 3, 00,000
P and L A\C 5,000 Debtors 50,000
Export Profit Reserve 50,000 Cash 1, 70,000
Workmen Compensation fund 25,000
15% Debentures 25,000
Workmen Saving fund 15,000
Creditors 30,000
10, 00,000 10,00,000
K Ltd. absorbs the business of J Ltd., on the subsequent terms:
a) K Ltd., to take over the assets (except cash) and only 15% debentures of J Ltd.
b) The assets are to be taken over at the subsequent values:
Rs.
Goodwill 50,000
Land and Building 1, 30,000
Plant and Machinery 1, 50,000
Furniture 30,000
Investments 1, 00,000
Debtors 40,000
c) The Purchase consideration to be discharged as under:
i) problem of 2,400 12% preference shares of Rs. 100 every to the preference shareholders of J Ltd.
ii) problem of seven equity shares of Rs. 10 every to the equity shareholders for every five equity shares held and
| Earning: Approval pending. |
