n12 Amount (Rs.) 10.75,000 Balance Sheet of B Ltd. as on 31.08.2010 (after Amalgamation) Liabilities Amount (Rs.) Assets Share Capital 7.12.500 Sundry Asset (of the above, 21,250 shares 17,50,0003,50,000- issued for consideration other 20,000 - 5,000) than cash) Reserves and Surplus Reserve (1,00,000+42,500 - 5,000) 1,37,500 Creditors 2.25.000 10,75,000 10,75,000 Q. 20. The following are the Balance Sheets of Signed Ltd. and Unsigned Ltd. as on 31st August, 2010. Liabilties Assets Signed Ltd. Rs. Unsigned Ltd. Rs. Signed Ltd. Unsigned Ltd. Rs. Rs. 7,00,000 2.50,000 6,00,000 3,00,000 Fixed Assets Investment : 6,000 shares of Us Ltd 5,000 shares of S Ltd. 80,000 2,00,000 1,00,000 80,000 Share capital Equity shares of Rs. 10 each 10% Preference shares of Rs. 10 each Reserves and surplus Secured loans : 12% Debentures Current liabilities Sundry creditors Bills payable 3,00,000 2,00,000 2,00.000 1,50,000 Current Assets : Stock Debtors Bills receivable Cash at bank 2,40,000 3,60,000 60.000 1.10,000 3,20,000 1,90,000 20,000 40,000 2,20,000 30,000 15,50,000 1,25,000 25,000 9,00,000 15,50,000 9,00,000 Fixed assets of both the companies are to be revalued at 15% above book value. Stock in-trade and Debtors are taken over at 5% lesser than their book value. Both the companies are to pay 10% Equity dividend, Preference dividend having been already paid. After the above transactions are given effect to, Signed Ltd. will absorb Unsigned Ltd. on the following terms. (1) 8 Equity shares of Rs. 10 each will be issued by Signed Ltd. t par against 6 shares of Unsigned Ltd. (ii) 10% Preference Shareholders of Unsigned Ltd. will be paid at 10% discount by issue of 10% Preference Shares of Rs. 100 each at par in Signed Ltd. (iii) 12% Debentureholders of Unsigned Ltd. are to be paid at 8% premium by 12% Debentues in Signed Ltd. issued at a discount of 10%. (iv) Rs. 30,000 is to be paid by Signed Ltd. to Unsigned Ltd. for Liquidation expenses. Sundry creditors of Unsigned Ltd. include Rs. 10,000 due to Signed Ltd. Prepare (a) Absorption entries in the books of Signed Ltd. (b) Statement of consideration payable by Unsigned Ltd