2,00,000 12% Debenture (1,00,000 + 1,00,000) Current liabilities and provisions: Sundry creditors (40,000 + 45,000) Provision for tax (1,00,000 + 60,000) 85,000 1,60,000 28,59,960 28,59,960 Small Ltd. Q. 18. The Balance Sheets of Big Ltd. and Small Ltd as on 31.03.10 were as follows: Balance Sheet as on 31.03.10 Liabilities Big Ltd. Small Ltd. Assets Big Ltd. (Rs.) (Rs.) (Rs.) (Rs.) Equity Share 8,00,000 3,00,000 Building 2,00,000 capital (Rs. 10) Machinery 5,00,000 10% Preference 2,00,000 Furniture 1,00.000 Share capital (Rs. 100) Investment 6.000 shares of Small Ltd. 60,000 1,00,000 3,00,000 60,000 General Reserve Profit and Loss A/C Creditors 3,00,000 2,00,000 2,00,000 1,00,000 1,00,000 3,00,000 Stock Debtors Cash and Bank Preliminary Expenses 1,50.000 3,50,000 90,000 50,000 1,90,000 2,50,000 70,000 30,000 10,00,000 15,00,000 10,00,000 15,00,000 no Big Ltd. has taken over the entire undertaking of Small Ltd. on 30.09.10, on which date, the position of Current assets except cash and Big Ltd bank balances and Current liabilities were as follows: (Rs.) Stock 1,20,000 Debtors 3,80,000 Creditors 1,80,000 Small Ltd (Rs.) 1,50,000 2,50,000 2,10,000 Profits earned for the half year ended on 30.09.10 after charging depreciation as 5% on building, 15% on machinery and 10% on furniture, are: Big Ltd. Rs. 1,02,500 Small Ltd. Rs. 54,000 On 30.08.10 both companies have declared 15% dividend for 2009-10. Goodwill of Small Ltd. has been valued at Rs. 50,000 and other Fixed assets at 10% above their book values on 31.03.10. Preference shares of Small Ltd. are to be allotted 10%. Preference Shares of Big Ltd. and Equity shareholders of Small Ltd. are to receive requisite number of equity shares of Big Ltd. valued at Rs. 15 per share on satisfaction of their claims. Show the Balance Sheet of Big Ltd. as of 30.09.10 assuming absorption is through by that date