Q. 7. Following are the Balance Sheet of Good luck Ltd. and Fair luck Ltd. as on 1st April,

2010.

Liabilities ABC Ltd. XYZ Ltd. Assets ABC Ltd. XYZ

Ltd.

Building 6,00,000 3,40,000

Equity share of Rs. 100 each 7,00,000 4,20,000 Cash 2,000 4,000

Reserve 1,40,000 72,000 Debtors 1,48,000 1,30,000

Creditor 2,10,000 1,38,000 Stock 3,00,000 1,56,000

10,50,000 6,30,000 10,50,000 6,30,000

ABC Ltd. amalgamated XYZ Ltd. on the basis of intrinsic value of share. The purchase

consideration is to be discharged in the from of fully paid equity shares, entries will be made at

par value only. A sum of Rs. 20,000 is owned by ABCLtd. To XYZ Ltd.

Give journal entries in the books of XYZ Ltd. Prepare the Balance Sheet of ABC Ltd. soon after

the amalgamation.