Pls solve this fast :|

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 

Shares Will be Issued 12000 Not 10000

20 will be the Share Premium

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.

correct me if i m wrong

doesnt PC means payment to shares holder in cash or in form of shares only ?? 

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.

all payments(to shareholders) are consider for pc....

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

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

+5,00,000 rs ??

as payment to PSH  in debentures ?? 

Originally posted by : manish agarwal
	+5,00,000 rs ?? as payment to PSH  in debentures ??

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.

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 :|

Originally posted by : Sourabh
	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

unless mentioned otherwise we cant use net assest method for calculating PC

btw thanks for reply