Illustration 6: The Jay Co. Ltd. and the Vijay Co. Ltd. agree to combine and form a new company Jay- Vijay Co. Ltd. with a capital of Rs. 20,00,000 divided in Equity Shares of Rs. 10 Rs. each. The new company is to take over all the assets and liabilities of both the companies on a consideration of issue of Vijay Co. Ltd. of Rs. 10,00,000 and Jay Co. Ltd. of Rs. 8,00,000 in fully paid shares of Rs. 10 each. 0.0 3. On the date of amalgamation the balances in the books of vendor companies 5. were as follows: 000 The new company is to pay the liquidation expenses of the vendor companies viz. Vijay Co. Ltd. Rs. 8,000 and Jay Co. Ltd. Rs. 11,000. Jay - Vijay Company's incorporation expenses amounted to Rs. 11,000. 000 5. 0.00 0,00 0,00 38.00 3.00 Particulars Issued and Paid-up Capital Reserve Fund Creditors Profit & Loss A/c (Cr.) Goodwill Land & Building Plant & Machinery Debtors Stock-in-Trade Bank Balance Vijay Co. Ltd. Rs. 9.00.000 1,00.000 75.000 40,000 1,00,000 2.50,000 6.70.000 50,00