10,50,000 15,41,820 Fixed assets (10 Lakhs +50,000) Current assets, Loans and Advances Stock (480+210) Less: Reserve debtors (290+150-25) Cash at bank (1,40,000+ 90,002) 4182 shares 6,90,000 (12,000) 6,78,000 4,15,000 2,30,002 Share Capital: Authorised, issued subscribed and fully paid up equity shares of Rs.10 each (of which were issued for consideration other than Resenesh and Surplus: Securities premium General reserve Profit and Loss A/C Secured Loans : 10% Debentures Current liabilities and Provisions A. Current liabilities B. Proposed dividend 4,182 2,00,000 (58.000 1,46,182 3,00,000 2,65,000 1.20,000 23,73,002 23,73,002 each Illustration 27: The following are the Balance Sheets of A Ltd. and B Ltd. as on 31st December 2008 Liabiltiies A Ltd. BLtd. Assets A Ltd. BLtd. Rs. Rs. Rs. Rs. Share capital Fixed Assets 7,00,000 2,50,000 Equity shares of 6,00,000 3,00,000 Investment: Rs. 10 6,000 ares of B 10% Preference 2,00,000 1,00,000 Ltd. 80,000 shares of Rs. 10 5,000 shares of A Ltd. 80,000 Reserves and 3,00,000 2,00,000 Current Assets: surplus Stock 2,40,000 3,20,000 Secured loans: Debtors 3,60,000 1,90,000 12% Debentures 2,00,000 1,50,000 Bills receivable 60,000 20,000 Current liabilities Cash at bank 1,10,000 40,000 Sundry creditors 2,20,000 1,25,000 Bills payable 30,000 25,000 15,50,000 9,00,000 15,50,000 9,00,000 Fixed assets of both the companies are to be revalued at 15% above book value. Stock in-trade and Debtors are taken over at 5% lesser than their book value. Both the companies are to pay 10% Equity dividend, "reference dividend having been already paid. a24 i. ii. After the above transactions are given effect to, A Ltd. will absorb B Ltd. on the following terms. 8 Equity shares of Rs. 10 each will be issued by A Ltd. at par against 6 shares of B Ltd. 10% Preference Shareholders of B Ltd. will be paid at 10% discount by issue of 10% Preference Shares of Rs. 100 each at par in A Ltd. iii. 12% Debentureholders of B Ltd. are to be paid at 8% premium by 12% Debentues in A Ltd. issued at a discount of 10% iv. Rs. 30,000 is to be paid by A Ltd. to B Ltd. for Liquidation expenses. Sundry creditors of B Ltd. include Rs. 10,000 due to A Ltd. Prepare : (a) Absorption entries in the books of A Ltd. (b) Statement of consideration payable by A Ltd