Purchase consideration

hello sing giiiiiii,

                                                        OLD CO.                   NEW CO.

        SUNDRY ASSETS                 10,00,000/-                12,00,000/-

LESS:  LIABILITIES                          3,00,000/-                  4,00,000/-

        TOTAL ASSETS                      7,00,000/-                  8,00,000/-

1) INTRINSIC VALUE OF INVESTMENT OF OLD CO. = 7,00,000 + 5%(8,00,000 + 20%) THERE FORE WE GET OLD COMPANY INSTIC VALUE = 7,47,475/-

VALUE PER SHARE = 7,47,475/10,000 SHARES = 74.75 PER SHARE.

2) INTRINSIC VALUE OF INVESTMENT OF NEW CO. = 8,00,000 + 20% OF 7,47,475 = 9,49,495/-

VALUE PER SHARE = 9,49,495/20,000 SHARES = 47.50 PER SHARE.

            TOTAL NO.OF SHARES OF OLD CO. = 10,000/-

LESS  SHARES ALREADY HELD BY NEW CO. = 2,000/-

BALANCE SHARES            =                           8,000/-

VALUE OF THE ABOVE SHARES = 8,000 * 74.75 = 5,98,000/-

NO.OF SHARE ISSUABLE AT INTRINSIC VALUE OF NEW COMPANY = 5,98,000/47.5 = 12,590/- SHARES

LESS     NO. OF SHARES ALREADY HELD BY OLD COMPANY =                                    1,000/- SHARES

THEREFORE NO.OF SHARES TO BE ISSUED TO OLD CO.   =                                          11,590/- SHARES

PURCHASE COSIDERATION   =  11,590 * 47.50 = 5,50,525/-

NOTE: SINGH GIIIIIIII VARIATION BECAUSE OF ROUND FIGURES TAKEN BY MEEEE

YOUR ANS.   =  5,50,450/-

MY ANS.      =  5,50,525/-  DUE TO ROUND FIGURES TAKEN BY MEEE.

thanku dear.........