. in new ca. Q7 COMPANY ACCOUNTING - AMALGAMATION Shah Company Limited and Daniel Co. Ltd. decided to amalgamate their business and a new Co. SD Co. Ltd. Is formed. The authored capital of new company was to be Rs.500000 divided into 50000 ordinary shares of Rs.101-esch. All these and abilities of Shah Company are taken over at book value and its shareholder are issued 15000 shares in the new company All the band bises of Danial Co. are taken over at book value and its shareholder are issued 12000 shares SD Co. Ltd. sud 13000 ordinary shares to general public of Rs.101-each Rs.13 per share. Preliminary expenses Rs 5000 is paid by SD Co. Ltd. The Balance sheets of Shah Company Ltd. and Danial Company Ltd. are given as under: Shah Company Ltd. Balance Sheet as on December 31, 2016 Cash Rs 20,000 Accounts Payable Rs.20,000 Account Receivable 15,000 Accumulated Depreciation 30,000 Merchandise Inventory 35,000 Share Capital of (Rs. 101-each) 100,000 Prepaid Insurance 5,000 Plant Assets 75,000 Rs. 150.000 Rs.150,000 Danial Company Ltd. Balance Sheet as on December 31, 2016 Cash Rs. 10,000 Accounts Payable Rs.15,000 Accounts Receivable 30.000 Accumulated Depreciation 30,000 Merchandise Inventory 15.000 Share Capital (Rs. 10/-each) 100,000 Plant Assets 90,000 Rs. 145,000 Rs.145,000 TEQUIRED: a) Give General Journal entries in the books of SD Co. Ltd. b) Prepare Balance sheet of SD Co. Ltd