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LUSS Current Liamus 14,70,023 10.00,300) 2,27.925 1,62,075 3,90,000 (b) Purchase Consideration 1.78,750 1.79.250 3,58,000 (c) Capital Reserve (la). (b) 49,175 (d) Goodwill f(b). (a)] 17.175 (e) Capital Reserve (Final Figure(C) - (0) 32,000 78, 875 - 21,675 * 2,98,500 - 21,675 Illustration 4 P and Q have been carrying on same business independently. Due to competition in the market, they decided to amalgamate and form a new company called PO Ltd. Following is the summarized Balance Sheet of P and Q as at 31.3.2012 Liabilities P Q Assets P Q Capital 7,75,000 8,55,000 Plant & 4,85,000 6,14.000 machinery Current liabilities 6,23,500 5,57,600 Building 7,50,000 6,40,000 Current assets 1,63,500 1,58,600 13,98,500 14.12,600 13.98,500 14.12,600 Following are the additional information: (0) The authorised capital of the new company will be 25,00,000 divided into 1,00,000 equity shares of 25 each. (W) Liabilities of P includes 50,000 due to Q for the purchases made. O made a profit of 20% on sale to P. (W) P has goods purchased from Q, cost to him10,000. This is included in the Current asset of Pas al 31 March, 2012 (iv) The assets of P and Q are to be revalued as under Q Plant and machinery Building 5.25,000 7,75,000 6,75,000 6,48,000 (V) The purchase consideration is to be discharged as under: (a) Issue 24,000 equity shares of 25 each fully paid up in the proportion of their profitability in the preceding 2 years. (b) Profits for the preceding 2 years are given below: P 1 year IP year 2,62,800 2,75,125 2.12.200 249.875 Total 4.75.000 5.25.000 (c) Issue 12% preference shares of 10 each fully paid up at par to provide income equivalent to 8% return on capital employed in the business as on 31.3.2012 after revaluation of assets of P and Q respectively. You are required to: (0) Compute the amount of equity and preference shares issued to P and Q. () Prepare the Balance Sheet of P& Q Ltd. Immediately after amalgamation