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Accounting 2-9 Exe Ltd. acquires 70% of equity shares of Zed Ltd as on 31st March, 2017 at a cost of Rs. 70 lakhs. The
Accounting
2-9 Exe Ltd. acquires 70% of equity shares of Zed Ltd as on 31st March, 2017 at a cost of Rs. 70 lakhs. The following information is available from the balance sheet of Zed Ltd. as on 31st March, 2017: Rs.in lakhs Fixed Assets 120 Investments 55 Current Assets 70 Loans & Advances 15 15% Debentures 90 Current Liabilities 50 The following revaluations have been agreed upon (not included in the above figures): Fixed Assets Up by 20% Investments Down by 10% Zed Ltd. declared and paid dividend @ 20% on its equity shares as on 31st March, 2017. Exe Ltd. purchased the shares of Zed Ltd. @ Rs. 20 per share. Calculate the amount of goodwill/capital reserve on acquisition of shares of Zed LtdStep by Step Solution
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