A Ltd. and B Ltd. are in the same industry. On 31st March, 2011 A Ltd. decided to amalgamate B Ltd. The balance sheet of both the companies is as follows

The scheme of amalgamation was:

1. All the shareholders of B Ltd. to get one equity share of face value Rs. 100/- of A Ltd.- to be issued at par for each share held by them in B Ltd.

2. A Ltd. will acquire all the assets and liabilities of B Ltd. at book value.

Pass necessary journal entries in the books of both the companies and prepare post amalgamation balance sheet.

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Liabilities Share Capital (Face value 100 each) Securities premium Development rebate reserve General reserve Profit and loss a/c Secured loan Current liabilities A (Amt. Rs.) 6,00,000 2,00,000 2,50,000 3,00,000 1,50,000 2,00,000 3,00,000 20,00,000 B(Amt.Rs.) 3,00,000 10,000 Debtors 3,000 6,000 1,000 Assets Land and building Plant and machinery 2,00,000 5,20,000 Stock Cash at bank A(Amt.Rs.) B(Amt.Rs.) 7,00,000 1,00,000 6,00,000 1,40,000 4,00,000 30,000 2,00,000 2,40,000 1,00,000 10,000 20,00,000 5,20,000