Query in Amalgamation...Please Help

The question is attached:

For AB

IV(AB) = 790000+1500 IV(MB)

                                10000

IV(MB) = 180000+4000 IV(AB)

                                6000

By solving this u will get 

IV (AB) = 92.78

IV (MB) = 91.85

What about the calculation of no of shares to be issued and the PC

Now PC to be paid

For AB = {92.78*10000)  *100

                        100

For MB = {91.85*6000} *100

                          100

Assuming Value of new company share is Rs. 100

No efffect has to be given for the shares already held by the companies as investments

This is not a case of cross company holding. cross holding means shares of new co. are held by old company OR new company hold the shares of old company. 

In this case new company does not hold any shares of AB ltd. or MB ltd. 

So no effect is given for investment held by both companies.

thnks a lot manish..

In the balance sheet of the amalgamated company, what wil be the investments amt ?

Sorry... i  provide wrong answer.

New answer is here: 

PC 

AB = For AB = {92.78*6000)  *100

                        100

For MB = {91.85*4500} *100

                          100

Value of investment will not be shown in balance sheet of new company.

Investment wiill be cancelled by old companies.

thanks..

Thanks Manish for replying. Such type of questions are not in PCC/IPCC syllabus, But i would like to know why you took cross holding figures in computing IV???  No doubt, that cross holding investments will have to be cancelled.. 

we are finding the value of net asset of each company. investment is included in net assets value. all assets are taken at market value. so investment will also be revalued. so the value of investment is IV of other company.