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Account It is assumed that the reduction in the value of the Inventory as on Jan 1, 2012 still applies Illustration 3 Star and Moon had been carrying on business independently. They agreed to amalgamate and form a new company Neptune Ltd. with an authorised share capital of 2,00,000 divided into 40,000 equity shares of 5 each. On 31st December, 2012, the respective summarized Balance Sheets of Star and Moon were as follows: Star Moon Fixed Assets 3.17.500 1.82.500 Current Assets 1.63.500 83.875 4.81.000 2,66,375 Less: Current Liabilities (2.98.500) (90,125) Representing Capital 1.82.500 1.76.250 Additional Information: (a) Revalued figures of Fixed and Current Assets were as follows: Star Moon 7 Fixed Assets 3,55,000 1,95,000 Current Assets 1,49.750 78,875 (b) The Trade receivables and Trade payablesinclude 721,675 owed by Star to Moon. The purchase consideration is satisfied by issue of the following shares and debentures: (1) 30,000 equity shares of Neptune Ltd., to Star and Moon in the proportion to the profitability of their respective business based on the average net profit during the last three years which were as follows: Star Moon 2010 Profit 2.24.788 1,36,950 2011 (Loss)/Profit (1.250) 1,71,050 2012 Profit 1,88,962 1,79,500 (i) 15% debentures in Neptune Ltd., at par to provide an income equivalent to 8% return on capital employed in their respective business as on 31st December 2012 after revaluation of assets. You are requested to: (1) Compute the amount of debentures and shares to be issued to Star and Moon (2) A Balance Sheet of Neptune Ltd., showing the position immediately after amalgamation