Amalgamation
This query is : Resolved
20 September 2016
The debtors and bank balance of songs of Vendoe Limited are to be retained by the liquidator and the Sunday creditor or to be paid out of the proceeds thereof.
Is the balance of debtors and bank balance and creditors are used to compute intrinsic value of the vendor company????????
21 September 2016
debtors intrinsic value : Yes.... even for creditors, one may tap them for a negotiation of discount.....
bank balance : both are same...intrinsic and extrinsic
bank balance : both are same...intrinsic and extrinsic
21 September 2016
The value of debtors is ₹21000 and bank balance is ₹18000 and payment made to creditors is ₹75000.
What is the value of each and every asset and liability taken to compute intrinsic value of the company.
Information regarding other assets and liabilities
Particulars. BV. MV
freehold property 60000 -
21 September 2016
what other information is given?
21 September 2016
BOOK VALUE of Assets----
P&M. 15000
Freehold property 60000
Stock 78000
Cash at Bank 18000
BOOK VALUE of Liabilities------
6%Debentures 60000
Sundry creditors 32000
MARKET VALUE of ASSETS-----
Goodwill. 30000
Debentures are to be redeemed at 4% premium
What is intrinsic value???????
21 September 2016
And debtors are at 21000
21 September 2016
yes, the value of debtors, bank balance and creditors is considered to find out intrinsic value
21 September 2016
OK thanks for your help
21 September 2016
you are most welcome.
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