17 1900 UUU) 1. Share Capital 18,75,000 Equity Shares of 10 each 187,500 2. Reserves and surplus Investment Allowance Reserve 6.00 Export Profit Reserve 1.50 7,50 3. Long Term Borrowings 12% Debentures (Assumed that new debentures were issued in exchange of the old series) 70,00 4. Other non-current assets Amalgmation Adjustment Account 7,50 Notes: (1) Shares are issued by ABX Ltd. on the basis of net assets acquired of AX Ltd. and BX Ltd. Hence, there is no goodwill (2) The statutory reserves of AX Ltd. and BX Ltd. are shown in the balance sheet of ABX Ltd. with a corresponding debit in Amalgamation Adjustment Account Internal Reconstruction of a Company Illustration 9 Following is the Summary Balance Sheet of ABC Ltd. as at 31 March, 2012: Liabilities Assets