Pls solve this fast :|

who said pc is 12 lakhs,,,,,,

pc is 17 lakhs(12 for eq share holder + 5 for pref share holder)

i dont knw why u people are taking so much cofusion...this question is one of the easiest question in internal reconstr. .....do work hard to crack CA..........

Best wishes.....

pc is 17 lakhs(12 for eq share holder + 5 for pref share holder).

Absolutly correct.

Originally posted by : manish agarwal
	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

Net Assets method is applied wen the payment method cant be applied i.e. wen the mode of payment is not clear.its nothing to do with mention in question.

in your question,its not given how equity shares will be given to equity shareholders,it doesnt even say equivalent no. of shares will be issued.hence Net Asset method will apply

I have done a similar or even same question n I had same confusion before my tutor corrected me.thats why I remember

Originally posted by : CA. JAIN
	who said pc is 12 lakhs,,,,,, pc is 17 lakhs(12 for eq share holder + 5 for pref share holder)   i dont knw why u people are taking so much cofusion...this question is one of the easiest question in internal reconstr. .....do work hard to crack CA.......... Best wishes.....

it is from amalgamation .... 

i have solved 50+ question from this chapter only got stucked here :'( 

Thanks,,,,,,,,,,,,,,,,,,,Manish Agarwal....Best wishes..yeah by mistake i mentioned internal reconstruction...yes it is of amalgamation.......but still it is one of the easiest question.....

and advise to those peole..who will appear in dec..2012..plz dont waste time in any mode of gadgets...whether for question or else.........

Originally posted by : Sourabh
	Originally posted by : manish agarwal 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  Net Assets method is applied wen the payment method cant be applied i.e. wen the mode of payment is not clear.its nothing to do with mention in question. in your question,its not given how equity shares will be given to equity shareholders,it doesnt even say equivalent no. of shares will be issued.hence Net Asset method will apply I have done a similar or even same question n I had same confusion before my tutor corrected me.thats why I remember

payment  TO              payment   IN                working                                       AMT

ESH                               ES                               80/120(15000)120                    1200000
PSH                               debentures                500000                                         500000

                                                                                                                total 1700000

thanks every 1 

payment to equity shareholders is wrong,question doesnt say equivalent no. of shares to be issued

WOW o.O 

Originally posted by : CA Lokesh Pokharna
	As per the revised AS-14, the amount of purchase consideration includes only those payments which are made by the transferee company to the shareholders (Equity and preference) of the  transferor company.   hence pc will be 12+5= 17 lac & no. of shares to be issued is 10000

thank u sir u cleared my doubt :) this is the answer i was waiting for :) 

pl find attached the solution.

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.