The Balance sheet as on 31
March,2003 of X Ltd and Y Ltd are as under:
Balance SheetLiabilitiesX Ltd.Rs. Y Ltd.Rs.AssetsX Ltd.Rs. Y Ltd.Rs.
Share Capital of Rs 10 each fully paid up
500,000300,000Buildings250,000155,00012% Preference Share of Rs.100 each220,000170,000Machineries325,000170,000General reserve80,00055,000furnitures57,50035,000Profit and Loss A/C75,00050,000Investments70,00050,00014% Debentures50,00035,000
Creditors75,00050,000Stock 125,00095,000Debtors90,000103,000Bank balances82,50052,000
X Ltd takes over Y Ltd on 10 April 1998. The purchase consideration is discharged asfollows:(i)Issued 35,000 equity shares of Rs.10 each at par to the equity shareholdersof Y Ltd.(ii)Issued 13% preference shares of Rs.10 each at par to the equityshareholders of Y Ltd of Y Ltd at 10% premium.(iii)The debenturehoders of Y Ltd will be converted into equivalent number of debentures of X Ltd.Show the opening entries and opening balance sheet of X Ltd after amalgamation.
The summarised Balance Sheet of Sun Ltd and Moon Ltd as at are as follows:
Balance Sheet as on 31
December, 2007LiabilitiesSun LtdRs.MoonLtd. Rs.AssetsSunLtd Rs.MoonLtd. Rs.
Share Capital of Rs 10 each fullypaid up
3,00,0002,50,000Plant and Machinery3,50,00004,00,00011% Preference Share of Rs.10each-1,50,000
General reserve1,20,000-Stock 1,00,00030,000Profit and Loss A/C1,00,000-Debtors1,25,00070,00012% Debentures50,0001,00,000Bank balances25,00050,000Creditors30,00050,000