Hi, I had already posted this Q. in the forum but got no reply...could someone pls tell me how to solve it?...only the Q looks big...but it won't take much time to solve it.
B/S of X ltd
Liabilities:
capital(Rs100each fully paid) 4,00,000
General reserve 80,000
p&l a/c 38,000
workmen's compensation reserve (expected liab Rs8000) 15,000
Fire insurance fund 60,000
Creditors 70,000
Provision for tax 50,000
Total: 713000
Assets:
G/W 80,000
L&B 1,10,000
P&M 2,50,000
stock 90,000
book debts 50,000
underwriting comm 10,000
prepaid exp 5,000
cash at bank 1,18,000
Total: 713000
The company is taken over by Y ltd. Determine the PC in each of the foll.
1.Each shareholder is paid at Rs20 in cash and is issued shares of Rs100 each, valued at Rs120 for every 5 shares held; all assets & liabilities taken over
2.Each share in X ltd. is valued at Rs150, the PC is to be discharged in the form of shares in Y ltd valued at Rs200(entries to be made at par value)
[Ans: 1. 656000, 2. 300000]
CAclubindia
