Indah Suria Bhd and Kunyit Hijau Bhd agreed to merge and form a new company named Ultra Bhd. Both companies planned to wind up on 1 January 2020 immediately after the new company was formed. The financial statements of both the companies going into liquidation are as shown below:   

   

120,000 units ordinary shares RM2 each were issued to the public which was to be used to settle the overdraft in Kunyit Hijau Bhd. Ultra Bhd agreed to pay five ordinary shares for every four units to the ordinary shareholders in both companies.The liquidation expenses of RM1,800 and RM2,700 for Indah Suria Bhd and Kunyit Hijau Bhd respectively were paid by Ultra Bhd.

 

You are required to prepare the following:

 

Ledger entries to close the books of sellers?

Ledger entries to open the books of buyer?

Statement of Financial Position for the new company?

Non current Assets Land & building Furniture and fittings Motor vehicle Current Assets Inventory Trade Receivables Bank Current Liabilities Bank Trade Payables Financed by Ordinary shares General reserve Retained earnings Indah Suria Bhd (RM) 74,000 39,000 18,000 54,600 24,500 21,000 231,100 28,900 136,000 25,000 41,200 Kunyit Hijau Bhd (RM) 87,000 45,800 36,400 36,500 25,400 231,100 16,000 16,000 125,800 41,300 32,000