Problem-01: The summarised Balance Sheets of A Ltd and B Ltd as at 1st April, 2018 are as under: Balance Sheets of A Ltd. and B Ltd. as at 1st April, 2018 Particulars (1) Note A Ltd. B Ltd. No. (3) (3) (2) (3) (4) I. EQUITY AND LIABILITIES (1) Shareholders' Funds: (a) Share Capital (1) 1,20,000 1,00,000 (b) Reserves and Surplus - Reserve 60,000 50,000 Profit and Loss Account 10,000 20,000 (2) Share Application Money Pending Allotment: (3) Non-current Liabilities: (4) Current Liabilities: TOTAL (a) Trade Payables-Creditors II. ASSETS (1) Non-current Assets: (a) Fixed Assets 30,000 10,000 2,20,000 1,80,000 (i) Tangible Assets Land and Building 1,40,000 1,20,000 (2) Current Assets: (a) Inventories 30,000 15,000 (b) Trade Receivables-Debtors 10,000 25,000 (d) Cash and Cash Equivalents - Cash and Bank 40,000 20,000 TOTAL 2,20,000 1,80,000 Notes to Accounts: (1) Share Capital Authorised Capital: Particulars A Ltd. B Ltd. ...Equity Shares of ... each ? ? ...Preference Shares of ... each Issued and Subscribed Capital: ? ? ? ? 8,000 Equity Shares of 15 each fully paid 1,20,000 10,000 Equity Shares of 10 each fully paid 1,00,000 1,20,000 1,00,000 1. The above two companies agree to amalgamate and form a new company AB Ltd on the following conditions: AB Ltd will take over all the assets and liabilities of A Ltd and B Ltd. 2. 3. 4. The entire purchase consideration will be satisfied by the issue of 28,600 equity shares of 10 each of AB Ltd. For the purpose of amalgamation, the value of each equity share is agreed at 25 and 12.50 for A Ltd and B Ltd respectively. The creditors are to be paid off by AB Ltd. You are required to: (i) Pass journal entries to close the books of A Ltd and B Ltd.; (ii) Pass journal entries in the books of AB Ltd; and (iii) Prepare the Balance Sheet of AB Ltd.;