9 Illustration 1: X Ltd. purchased the business of Y Ltd. whose balance sheet was as follows: Liabilities Rs. Assets Rs. 80,000 Equity Shares Goodwill 1,00,000 of Rs. 10 each 8,00,000 Building 5,00,000 Capital Reserve 1,00,000 Furniture & fixtures 1,00,000 Profit & Loss 2,00,000 Stock 3.30,000 Creditors 1,50,000 Debtors 1.25,000 Bills Payable 1,25,000 Bank 2,00,000 Preliminary Expenses 20,000 13,75,000 13,75,000 It was agreed that goodwill is to be valued of Rs. 2,00,000 building Rs. 6,00,000. Other assets are worth their book values. X Ltd. does not take over bank balance. Calculate consideration