(+) BLtd (23,00,000 - 2,00,000) 21,00,000 46,00,000 RS. 100 each (8,000+5,500+13,200) = 26,700 shares) Reserves (WN # 4) Securities Premium Current Liabilities (18,00,000+10,00,000 - 40,000) 22,50.000 21,60,000 27,60,000 1,29,60,000 1,29,60,000 h9 Q.15. M Ltd. and N Ltd. were amalgamation on and from 1st April, 2010. A new company A Ltd. was formed to take over the business of the existing companies. The balance sheet of MLtd and N Ltd as on 31st March, 2010 are given below: (Rs. in lakhs) Liabilities MLtd. N Ltd. Assets MLtd. N Ltd. Share capital Fixed assets Equity shares of Rs. 100/ 850 725 Land and Building 460 275 each Plant and Machinery 325 210 14% Preference Share of Investments 75 50 Rs. 100 each 320 175 Current Asset and Reserves and surplus Loans and Advances Revaluation reserve 125 80 Stock 325 269 General reserve 240 160 Sundry Debtors 305 270 Investment Allowance 50 30 Bills receivable 25 Reserve Cash and Bank 385 251 Profit and Loss Account 75 52 Secured Loans 13% Debentures (Rs. 100 each) 50 28 Unsecured Loan Public Deposits 25 Current liabilities and Provision Sundry creditors 145 75 Bills Payable 20 1,900 1,325 1,900 1,325 Other Information : 1. 13% debentures of M Ltd and N Ltd are discharged by A Ltd by issuing such number of its 15% debentures of Rs. 100 each so as to maintain the same amount of interest. it. Preference shareholders of the two companies are issued equivalent number of 15% preference shares of A Ltd. at a price of Rs. 125 per share (face value Rs. 100) iii. A Ltd. will issue 4 equity shars for each equity share of M Ltd. and 3 equity shares for each equity share of N Ltd. The shares are to be issued @ Rs. 35 each, having a face value of Rs. 10 per share. iv. Investment allowance reserve is to be maintained for two more years. Prepare the balance sheet of A Ltd. as on 1st April 2010 after the amalgamation has been caried out