15.000 Question Following is the summarized Balance Sheet of X Co. Ltd. as at 31st March, 2015: Balance Sheet as at 31st March, 2015 Liabilities Assets Equity share capital 15,00,000 Land and building 10,00.000 R100 each) 11% Pref share capital 5,00.000 Plant and Machinery 7,00,000 General Reseve 3.00.000 Furniture and Fittings 2,00.000 Trade Payables 2,00.000 Inventory in trade 3,00.000 Trade Recivables 2,00.000 Cash in hand & at Bank 1,00,000 25,00,000 25,00,000 Y Co Ltd agreed to take over X Co. Ltd. on the following terms: Each equity share in X Co. Ltd. for the purpose of absorption is to be valued at 80. (i) Equity shares will be issued by Y Co. Ltd. by valuing its each equity shares of 100 each at 120 per share 11% Preference shareholders of X Co Ltd. will be given 11% redeemable debentures of Y Co. Ltd. at equivalent value IV) All the Assets and Liabilities of X Co. Ltd. will be recorded at the same value in the books of Y Co. Ltd. (a) Calculate Purchase consideration (b) Pass Journal entries in the books of Y Co. Ltd. for absorbing X Co. Ltd