Assignment Topic Q1: What is the different between AMALGAMATION and ABSORPTION? Q2: The following are the liabilities and assets of Amrita Ltd Assets Amount Liabilities and Equity Amount Goodwill 26000 Share capital 40000 Land & building 14000 Debentures 20000 Plant & Machinery 24000 8000 Sundry creditors 16000 6000 Stock General reserve 6000 28000 Debtors Profit & Loss A/c 8000 Cash 8000 Preliminary expenses 102000 102,000 Bangalore Ltd takes over the business of Amrita Ltd. The value agreed for various assets are: Goodwill Rs.20000, Land & Building Rs.23000, Plant and Machinery Rs.22000, Stock Rs.13000 and Debtors Rs.6000. Bangalore Ltd does not take over cash but agrees to assume the liability of sundry creditors at Rs.3000 and Debentures 3000. Requirements: Change the value agreed for assets and liabilities ems by using your own numbers and answer the following: 1. calculate the purchase consideration. 2. Do the necessary journal entries in books of Bangalore Ltd? Answer: