Illustration - 13 a 13 Sand M had been carrying on business independently, agree to amalgamate and form a company N Ltd. with an authorised Share capital of Rs. 2,00,000 divided into 40,000 equity shares of Rs. 5 each. On 31st December, 2008, the respective Balance Sheets of S and M were as follows: Particulars S Rs. M Rs. Fixed Assets Current Assets 3,17,500 1.63,500 4,81,000 2.98.500 1,82,500 1,82,500 83.875 2,66,375 90.125 1,76,250 Less: Current liabilities M Additional Information: Revalued figures of Fixed and Current assets were as follows: Particulars Fixed Assets Current Assets The debtors and creditors include Rs. 21,675 owed by Sto M. S 6,55,000 1,49,750 2,95,000 78,875 The purchase consideration is satisfied by issue of the following shares and debentures: i. 30,000 equity shares of N Ltd. to S and M in the proportion to the profitability of their respective business based on the average net profit during the last three years which were as follows: Particulars 2006 Profit 2,24,788 1,36,950 2007 (Loss) / Profit (1,250) 1,71,050 2008 Profit 1,88,962 1,79,500 S M ii. 15% debentures in N Ltd. at par to provide an income equivalent to 10% return on capital employed in their respective business as on 31st December 2008 after revaluation of assets. You are required to: 1. Compute the amount of debentures and shares to be issued to S and M. 2. A Balance sheet of N Ltd. showing the position immediately after amalgamation