Taking the data of Example 7, if Dhanlaxmi transfers all the debentures along with the plant and machinery and creditors mentioned therein and Rooplaxmi issues the shares of only ` 50,000 then how the balance sheets will appear.

Data from Example 7

Dhanlaxmi Limited has two divisions. Namely Dhan and Laxmi. On 1st April, 2010, it decided to create a new company to which it will pass on the plant and machinery worth ₹1,00,000 and sundry creditors worth ₹50,000 for which newly established company Rooplaxmi Limited will issue shares of ₹50,000. Show how the balance sheet of Dhanlaxmi Limited and Rooplaxmi Limited will appear just after the demerger.

Transcribed Image Text:

Balance Sheet of Dhanlaxmi Limited as on 31st March, 2010 Assets Freehold property Plant and machinery Stock Debtors Investment Bank Preliminary expenses Liabilities Equity shares of face value * 10 each General reserve Capital reserve Securities premium P & La/c Work compensation fund Export profit reserve 12% Debentures Sundry creditor Amount 2,55,000 67,500 1,59,000 12,000 25,000 12,500 1,250 1,75,000 55,500 7,62,750 Amount 2,70,000 2,20,000 88,250 1,38,000 26,250 20,000 250 7,62,750