Atma Ram Ltd. is agreed to acquire the business of Kumbat Ltd. as on 31st March, 2018. The summarised Balance Sheet of Kumbat Ltd. on that date was as under :The consideration payable by Atma Ram Ltd. was agreed as follows :

(i) Cash payment equivalent to ₹2.50 for every share of ₹10 in Kumbat Ltd.

(ii) Issue of 45,000 (₹10) shares fully paid, in Atma Ram Ltd., having an agreed value of ₹15 per share.

(iii) Issue of such an amount of fully paid 5% Debentures of Atma Ram Ltd., at 96% as is sufficient to discharge the 6% debentures of Kumbat Ltd., at a premium of 20%.

(iv) The directors to Atma Ram Ltd., valued land, building and machinery at ₹6,00,000; the stock-in-trade at ₹71,000 and the debtors at their book value subject to an allowance of 5% to cover doubtful debts. The cost of liquidation of Kumbat Ltd., was ₹2,500.

Atma Ram Ltd. also issued to the public 5,000 shares of ₹10 each at ₹15 per share. The shares were fully subscribed and paid for. You are required to prepare the Ledger Accounts in the books of Kumbat Ltd. and prepare opening Balance Sheet of Atma Ram Ltd., after the acquisition

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I. EQUITY AND LIABILITIES (1) Shareholders' Funds: (a) Share Capital (b) Reserves and Surplus (2) Share Application Money Pending Allotment: (3) Non-current Liabilities: (a) Long-term Borrowings -6% Debentures (4) Current Liabilities: (a) Short-term Borrowings (b) Trade Payables TOTAL II. ASSETS (1) Non-current Assets: (a) Fixed Assets Balance Sheet of Kumbat Ltd. as at 31st March, 2018 Particulars (1) (2) Current Assets: (i) Tangible Assets --Land, Building and Machinery (ii) Intangible Assets -- Goodwill TOTAL (a) Current Investments (b) Inventories (c) Trade Receivables (d) Cash and Cash Equivalents Note No. (2) Amount (²) (3) 3,00,000 1,40,000 50,000 10,000 5,00,000 3,20,000 50,000 84,000 18,000 28,000 5,00,000