Illustration 13. The summarized Balance Sheet of A Ltd. and B Ltd, as at 31st March, 2017 were as under: B Ltd. A Ltd. (*) 20,00,000 12,00,000 Fully paid up equity shares of 10 each Share Premium Account General Reserve Profit and Loss Account 10% Debentures Secured Loan Sundry Creditors 4,00,000 5,20,000 3,60,000 10.00,000 6,00,000 5,00,000 3,20,000 6,00.000 3,40,000 29,60,000 48.80,000 18,00,000 10,00,000 1,60,000 Land and Buildings Plant and Machinery Investments (10,000 shares in B Ltd.) Stock 9,00,000 7,60,000 Debtors Bank 10,40,000 8,20,000 60,000 48.80,000 7,00.000 5,20,000 80,000 29,60,000 184 -. Z Ltd., an existing company took over both A Ltd. and B Ltd. (a) The shares of A and B are to be valued as under: A Ltd. 18 per share BLtd. 20 per share (b) A contingent liability of A Ltd. of 1,20,000 is to be treated as real liability. (c) The shareholders of A Ltd. and B Ltd. are to be paid by issuing sufficient number of shares of Z Ltd. at par. (d) The shares of Z Ltd. are issued at 10 each. Illustration 13. The summarized Balance Sheet of A Ltd. and B Ltd, as at 31st March, 2017 were as under: B Ltd. A Ltd. (*) 20,00,000 12,00,000 Fully paid up equity shares of 10 each Share Premium Account General Reserve Profit and Loss Account 10% Debentures Secured Loan Sundry Creditors 4,00,000 5,20,000 3,60,000 10.00,000 6,00,000 5,00,000 3,20,000 6,00.000 3,40,000 29,60,000 48.80,000 18,00,000 10,00,000 1,60,000 Land and Buildings Plant and Machinery Investments (10,000 shares in B Ltd.) Stock 9,00,000 7,60,000 Debtors Bank 10,40,000 8,20,000 60,000 48.80,000 7,00.000 5,20,000 80,000 29,60,000 184 -. Z Ltd., an existing company took over both A Ltd. and B Ltd. (a) The shares of A and B are to be valued as under: A Ltd. 18 per share BLtd. 20 per share (b) A contingent liability of A Ltd. of 1,20,000 is to be treated as real liability. (c) The shareholders of A Ltd. and B Ltd. are to be paid by issuing sufficient number of shares of Z Ltd. at par. (d) The shares of Z Ltd. are issued at 10 each