manish agarwal (IPCC,PMIR,Bcom[h]) (88 Points)
30 September 2012
Following is the Balance Sheet of X Co. Ltd. as at 31st March, 2008:
Y Co. Ltd. agreed to take over X Co. Ltd. on the following terms:
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CA. Praveen
(Chartered Accountant)
(119 Points)
Replied 30 September 2012
Calculation of PC:
No. of Existing Equtiy Shares of X com: 15000 of Rs.. 100 each
Value of Equity Shares for the purpose of Aquisition 15000 * 80 = 12,00,000
Therefore, PC will be 12,00,000 to ESH and 500000 to Pref SH = 17,0,0000
Note: Shares to be issued by Y com. 12,00,000/120= 10,000
sreenath
(Articled Assistant)
(219 Points)
Replied 02 October 2012
Shares Will be Issued 12000 Not 10000
20 will be the Share Premium
manish agarwal
(IPCC,PMIR,Bcom[h])
(88 Points)
Replied 05 October 2012
CA. JAIN
(Chartered Accountant)
(466 Points)
Replied 05 October 2012
Purchase consideration means payment to shareholdre or payment to(eq. share holder + pre. share holder)
thats why deb. issued to pref share holder is also consider for the cal. of PC.
manish agarwal
(IPCC,PMIR,Bcom[h])
(88 Points)
Replied 05 October 2012
correct me if i m wrong
doesnt PC means payment to shares holder in cash or in form of shares only ??
CA Manish
(Job)
(5264 Points)
Replied 05 October 2012
Definition of Consideration as per AS 14
Consideration for the amalgamation means the aggregate of the
shares and other securities issued and the payment made in the
form of cash or other assets by the transferee company to the
shareholders of the transferor company.
CA. JAIN
(Chartered Accountant)
(466 Points)
Replied 05 October 2012
all payments(to shareholders) are consider for pc....
Sourabh
(Student)
(360 Points)
Replied 05 October 2012
Net Assets method will apply.PC will be 23 lakhs.5 lakhs will be given to pref. shareholders in the form of debentures,n equity shareholders will be issued 15000 equity shares at 20 premium
CA. JAIN
(Chartered Accountant)
(466 Points)
Replied 05 October 2012
No. of share issued ; 10,000
those share are issued at rs 20 premium.....
so part of pc for eq, share holder 10000(100+20) =12,00,000
manish agarwal
(IPCC,PMIR,Bcom[h])
(88 Points)
Replied 05 October 2012
+5,00,000 rs ??
as payment to PSH in debentures ??
CA Manish
(Job)
(5264 Points)
Replied 05 October 2012
| Originally posted by : manish agarwal | ||
 |
+5,00,000 rs ?? as payment to PSH in debentures ?? |
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Definition of Consideration as per AS 14
Consideration for the amalgamation means the aggregate of the
shares and other securities issued and the payment made in the
form of cash or other assets by the transferee company to the
shareholders of the transferor company.
manish agarwal
(IPCC,PMIR,Bcom[h])
(88 Points)
Replied 05 October 2012
so that means PC will be 12,00,000 ??
pls reply sir i m already confused :| cant find any similar question with answer almost looked 100s of question :|
manish agarwal
(IPCC,PMIR,Bcom[h])
(88 Points)
Replied 05 October 2012
| Originally posted by : Sourabh | ||
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Net Assets method will apply.PC will be 23 lakhs.5 lakhs will be given to pref. shareholders in the form of debentures,n equity shareholders will be issued 15000 equity shares at 20 premium |
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unless mentioned otherwise we cant use net assest method for calculating PC
btw thanks for reply
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