In the Books of VIOLA Ltd

JOURNAL
Date
 Working Notes

STEP 1- VIOLA LTD 24000* 15= 3600000

YARROW LTD- 30000*10= 3,00,000

STEP 2- VIOLA LTD 24000*25= 600000

YARROW LTD = 30000* 12.50= 375000

STEP 3- 85800*10= 8,58,000

RATIO OF 600000: 375000=8:5

STEP 4 = 858000*8/13=528000
 In the Books of VIOLA Ltd
JOURNAL
Particulars L.F.
REALISATION A/C DR
TO REAL ESTATE ACCOUNT
TO BUILDING ACCOUNTA/C
TO PLANT AND MACHINERY ACCOUNT A/C
TOEQUIPMENT 'SA/C
TO ACCOUNT RECEIVABLES A/C
TO INVENTORIES A/C
TO DEBTORS A/C
TO CASH A/C
( BEING THE ASSEST TRANSFERRED TO THE REALISATION ACCOUNT)

CREDITORS A/C DR
TO REALISATION
( BEING LIABILITES TRANSFERRED TO THE REALISATION ACCOUNT)

SHARE CAPITAL A/C DR

RESERVES AND SURPLUS A/C DR
PROFIT AND LOSS A/C DR
TO SUNDRY EQUITY SHAREHOLDERS
( BEING THE SHARE CAPITAL, RESERVES AND SURPLUS AND PROFIT AND LOSS TRANSFER
ED TO THE SUNDRY SHAREHOLDERS ACCOUNT)

ZENOBIA LTD A/C DR

TO REALISATION A/C
( BEING THE PURCHASE CONSIDERATION DUE FROM Z LTD)

SUNDRY EQUITY SHAREHOLDERS A/C DR

TO REALISATION A/C
( BEING LOSS ON REALISATION INCURRED)

SHARES IN Z LTD A/C DR

TO ZENOBIA LTD A/C
( BEING THE PURCHASE CONSIDERATION RECEIVED FROM Z LTD )

SUNDRY EQUITY SHAREHODLERS A/C DR

 TO SHARES OF Z LTD A/C
( BEING THE DISTRIBUTION OF SHARES IN Z LTD AMONG THE EXISTING SHAREHOLDERS)

Working Notes

STEP 1- VIOLA LTD 24000* 15= 3600000

YARROW LTD- 30000*10= 3,00,000

STEP 2- VIOLA LTD 24000*25= 600000

YARROW LTD = 30000* 12.50= 375000

STEP 3- 85800*10= 8,58,000

RATIO OF 600000: 375000=8:5

STEP 4 = 858000*8/13=528000
 In the Bo

Amount (Dr.) Amount (Cr.) Date

660,000
288000
90000
30,000
12000
10000
80000
30000
120000

90000
90000

360000
180,000
30,000
570000

528,000
528000

42000
42000

528000
528000

528000
528000

STEP 1- VIOLA LTD 24000* 15= 36

YARROW LTD- 30000*10= 3,00,

STEP 2- VIOLA LTD 24000*25= 60

YARROW LTD = 30000* 12.50= 37

STEP 3- 85800*10= 8,58,000

RATIO OF 600000: 375000=8

STEP 4 = 858000*5/13=3,30,0
 In the Books of YARROW Ltd
JOURNAL
Particulars L.F.
REALISATION A/C DR
TO REAL ESTATE ACCOUNT
TO BUILDING ACCOUNTA/C
TO PLANT AND MACHINERY ACCOUNT A/C
TOEQUIPMENT 'SA/C
TO ACCOUNT RECEIVABLES A/C
TO INVENTORIES A/C
TO DEBTORS A/C
TO CASH A/C
( BEING THE ASSEST TRANSFERRED TO THE REALISATION ACCOUNT)

CREDITORS A/C DR
TO REALISATION
( BEING LIABILITES TRANSFERRED TO THE REALISATION ACCOUNT)

SHARE CAPITAL A/C DR

RESERVES AND SURPLUS A/C DR
PROFIT AND LOSS A/C DR
TO SUNDRY EQUITY SHAREHOLDERS
( BEING THE SHARE CAPITAL, RESERVES AND SURPLUS AND PROFIT AND LOSS TRANSFER
ED TO THE SUNDRY SHAREHOLDERS ACCOUNT)

ZENOBIA LTD A/C DR

TO REALISATION A/C
( BEING THE PURCHASE CONSIDERATION DUE FROM Z LTD)

SUNDRY EQUITY SHAREHOLDERS A/C DR

TO REALISATION A/C
( BEING LOSS ON REALISATION INCURRED)

SHARES IN Z LTD A/C DR

TO Z LTD A/C
( BEING THE PURCHASE CONSIDERATION RECEIVED FROM Z LTD )

SUNDRY EQUITY SHAREHODLERS A/C DR

 TO SHARES OF Z LTD A/C
( BEING THE DISTRIBUTION OF SHARES IN Z LTD AMONG THE EXISTING SHAREHOLDERS)

Working Notes

STEP 1- VIOLA LTD 24000* 15= 3600000

YARROW LTD- 30000*10= 3,00,000

STEP 2- VIOLA LTD 24000*25= 600000

YARROW LTD = 30000* 12.50= 375000

STEP 3- 85800*10= 8,58,000

RATIO OF 600000: 375000=8:5

STEP 4 = 858000*5/13=3,30,000
 In the

Amount (Dr.) Amount (Cr.) Date

540,000
276000
60000
18,000
6000
5000
40000
75000
60000

30000
30000

300000
150,000
60,000
510000

330,000
330000

180000
180000

330000
330000

330000
330000
 In the Books of ZENOBIA Ltd
JOURNAL
Particulars L.F.
BUSINESS PURCHASES A/C
TO LIQUIDATION OF VIOLA LTD

( BEING THE AMOUNT PAYBALE TO THE X LTD AS PER AGREEMENT)

REAL ESTATE ACCOUNT
BUILDING ACCOUNTA/C
PLANT AND MACHINERY ACCOUNT A/C
EQUIPMENT 'SA/C
ACCOUNT RECEIVABLES A/C
INVENTORIES A/C
DEBTORS A/C
CASH A/C
TO CREDITORS A/C
TO BUSINESS PURCHASE A/C
TO RESERVE A/C
( BEING THE DIFFERENT ASSEST AND LIABILITES TAKEN OVER AND THE DIFFERENCE B/W
SHARE CAPITAL ISSUE AND AMOUNT OF SHARE CAPITAL OF X ADJUSTED AGAINST RESERVE

LIQUIDATORS OF VIOLA LTD

TO EQUITY SAHRE CAPITAL A/C
( BEING THE ISSUE OF SHARES AGAINST PURCHASE CONSIDERATION )

BUSINESS PURCHASES A/C DR

TO LIQUIDATION OF YARROW LTD

( BEING THE AMOUNT PAYBALE TO THE X LTD AS PER AGREEMENT)

REAL ESTATE ACCOUNT
BUILDING ACCOUNTA/C
PLANT AND MACHINERY ACCOUNT A/C
EQUIPMENT 'SA/C
ACCOUNT RECEIVABLES A/C
INVENTORIES A/C
DEBTORS A/C
CASH A/C
TO CREDITORS A/C
TO BUSINESS PURCHASE A/C
TO RESERVE A/C
( BEING THE DIFFERENT ASSEST AND LIABILITES TAKEN OVER AND THE DIFFERENCE B/W
SHARE CAPITAL ISSUE AND AMOUNT OF SHARE CAPITAL OF X ADJUSTED AGAINST RESERVE

LIQUIDATORS OF Y LTD
 TO EQUITY SAHRE CAPITAL A/C
( BEING THE ISSUE OF SHARES AGAINST PURCHASE CONSIDERATION )

CREDITORS A/C DR
TO CASH AND BANK A/C
( BEING CREDITORS PAID IN FULL )

Working Notes
Amount (Dr.) Amount (Cr.)
528,000
528000

288000
90000
30,000
12,000
10,000
80,000
30,000
120000
90000
528000
42000

528,000
528000

330000
330000

276000
60000
18000
6,000
5,000
40,000
75,000
60000
30000
330000

330000
 330000

120000
120000