Liabilities Rs. Assets Rs. Share Capital: Sundry Fixed assets 1,60,000 Equity Shares of (85,000 + 75,000) Rs. 100/- each (90,500497,000) 1,87,500 Investments (10,500 + 5,500) 16,000 Reserves and Surplus: Current Asset, and Loan Advances: Investment Allowance Reserve Current Assets: (5,000 + 1,000) 6,000 Stock (12,500 + 27,500) ) 40,000 Export Profit Reserve (500 + 1,000) 1,500 Debtors (18,000 + 40,000) 58,000 12% Debentures (30,000 + 40,000) 70,000 Cash and Bank (4,500 + 4,000) 8,500 Current liabilities and Provisions: Miscellaneous Expenditure to Sundry creditors (10,000+ 15,000) 25,000 the extent not written off: : Amalgamation 7,500 Adjustment A/c 2,90,000 2,90,000 Illustration - 5 A Ltd. and B Ltd. were amalgamation on and from 1st April, 2009. A new company X Ltd. was formed to take over the business of the existing companies. The Balance sheet of A Ltd and B Ltd as on 31st March, 2009 are given below: (Rs.in lakhs) Liabilities A Ltd. B Ltd. Assets A A Ltd. BLtd. Share capital: Fixed assets: Equity Shares of Rs. 100/- 850 725 Land and Building 460 275 each Plant and Machinery 325 210 10% Preference Share of Investments 75 50 Rs. 100 each 320 175 Current Asset and Reserves and surplus: Loans and Advances: Revaluation Reserve 125 80 Stock 325 269 General reserve 240 160 Sundry Debtors 270 Investment Allowance 50 30 Bills receivable 25 Reserve Cash and Bank 251 Profit and Loss Account 75 52 305 385 Secured Loans: 50 28 25 13% Debentures (Rs.100 each) Unsecured Loan: Public Deposits Current liabilities and Provision: Sundry creditors Bills Payable 75 145 20 1,900 1,325 1,900 1,325 i. Other Information: 13% debentures of A Ltd and B Ltd are discharged by X Ltd. by issuing such number of its 15% de- bentures of Rs. 100 each so as to maintain the same amount to interest. ii. Preference shareholders of the two companies are issued equivalent number of 15% preference shares of X Ltd. at a price of Rs. 125 per share (face value Rs. 100) iii. X Ltd. will issue 4 equity shares for each equity share of A Ltd. and 3 equity shares for each equity share of B Ltd. The shares are to be issued @ Rs. 35 each, having a face value of Rs. 10 per share. iv. Investment allowance reserve is to be maintained for two more years. Prepare the Balance sheet of X Ltd. as on 1st April, 2009 after the amalgamation