23 Able Ltd. made an offer to acquire all the shares of Baker Lid. at a price of 25 per share, to be satisfied by the allotment of five shares in Able Ltd. for every four shares in Baker Lid. By the date of expiration of the offer, which was on 1st January, 2017, share-holders owning 75% of the shares in Baker Ltd. accepted the offer and the acquisition was effective from that date. The accounting date of Baker Ltd. was on 31st March in each year, but to conform to Able Ltd, accounts were prepared to 30th June, 2017, covering the fifteen months to the date. The draft summarised accounts of the companies on 30th June, 2017 which do not include any entries regarding the acquisition of shares in Baker Lid., were as follows: Balance Sheet as on 30th June, 2017 Equity and Liabilities Able Lid. Baker Ltd. Shareholders' funds 8 ? Share Capital Equity shares of 10 each Authorised: 300,000 75,000 Issued & fully pald: 1,50,000 60,000 20,000 7,000 6.000 23.000 38,000 Reserves & Surplus: General Reserve 55,000 Surplus Prolit & Loss Account 62.000 1, 17,000 Trade Payables 27,000 Provision for taxation 33,000 3.27,000 Assets Non-current assets Tangible assets Freehold property, al cost 2,00,000 Plant & Machinery al cost 50,000 12,000 Less: Depreciation 18,000 32,000 3.000 Quoted Investment at Cost 7,000 Current assets Inventory at Cost 32,000 Trade Receivables 41,000 Balance at Bank 15.000 3.27.000 Draft Profit & Loss Account for the period ended on 30th June, 2017 Able Efd. One Year 9,000 21,000 17,000 8,000 93.000 Baker Lid. 15 months Balance brought forward Profit for the period 14,000 80 000 24.000 32,000 Taxation for the period Interim Dividend paid, 30th Nov., 2016 Balance carried forward 12,000 18,000 30.000 6,000 4,000 20,000 30,000 62.000 34.000 The Directors of Able Ltd. recommended and declared a final dividend of 20% to the shareholders on register as on 30th June, 2017. The Directors of Baker Ltd., declared a final dividend of 12%* payable on 30th September, 2017 You are required to prepare the consolidated Balance Sheet of Able Lid. and Baker Lid. on 30th June, 2017