The summarised Balance Sheet of X Ltd. on 31.3.2018 is as under : On the above date,
Question:
The summarised Balance Sheet of X Ltd. on 31.3.2018 is as under :
On the above date, X Ltd. is absorbed by Y Ltd. on the following conditions :
(1) All the assets and liabilities are taken over at book value.
(2) An exchange of 6 shares in Y Ltd. of ₹10 each at par for every 5 shares in X Ltd.
(3) 10% debentures are to be redeemed at a premium of 10%. Prepare Ledger Accounts of X Ltd. to close the books. Also pass ournal entries in the books of Y Ltd. The expenses of liquidation paid by Y Ltd. amounted to ₹3,000.
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Step by Step Answer:
To solve this we need to close the books of X Ltd and also make the journal entries in the books of Y Ltd based on the conditions given 1 First we will handle the ledger accounts of X Ltd At the time ...View the full answer
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Related Book For 
Financial Accounting Volume II
ISBN: 9789387886230
4th Edition
Authors: Mohamed Hanif, Amitabha Mukherjee
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