(c)A and B decide to amalgamate themselves into Sharp Limited. The followingare their Balance Sheets as on 31stDecember, 2009.
Compute the amount of purchase consideration each of these' companies underpurchase method as per AS-14.(d)H purchased 500 equity shares of ~ 100 each in the ABC <:ompanyLimited for~ 62,500 inclusive of brokerage and stamp duty. Some years later the companydecided to capitalise its profit and to issue to the 'holders of equity shares oneequity share as Bonus for every equity share held by them. Prior tocapitalization, the shares of ABC Company Limited were quoted at ~ 175 pershare. Aft~r the capitalization, the shares were quoted at ~ 92.50 per share. Hsold the Bonus shares and received ~ 90 per share. Show Investment Alc in H'sbooks on average cost basis as per AS-13.
Face value and paid UPInvestmentscapitalShrecapital (1005,00,000 4,00,0001000 shares in B Ltd.1,30,000
each)C1eneralFleserves2,00,000 1,00,0002000 shares in A Ltd
9,00,000 6,50,0009,00,000 6,50,000