QUESTION 49 Exe Limited was wound up on 31.3.2013 and its summarized Balance Sheet as on that date was given below: Liabilities Share capital: 1,20.000 Equity shares of 10 each Reserves and surplus: Profit prior to incorporation Contingency reserve Profit and loss A/c Current liabilities: Trade payables Balance Sheet of Exe Limited as on 31.3. 2013 Assets Fixed assets 12,00,000 Current assets: Provisions: Provision for income tax Trade payables Inventory 42,000 Trade receivables. 2,70,000 Cash at bank 2,52,000 Bills payable Sundry creditors 2,66,000 The details of Trade receivables and trade payables are as under: Trade receivables 2.20.000 22.50.000 Sundry debtors Less: Provision for bad and doubtful debts Bills receivable 9,64,000 7,75,000 1,82,000 3.29.000 12,86,000 1,60,000 (8,000) 22.50,000 1,52,000 30,000 1.82.000 40,000 2.26.000 2.66.000 Wye Limited took over the following assets at values shown as under: Fixed assets 712,80,000, Inventory 7,70,000 and Bills Receivable 30,000. Purchase consideration was settled by Wye Limited as under: 5,10,000 of the consideration was satisfied by the allotment of fully paid 10% Preference shares of 100 each. The balance was settled by issuing equity shares of 10 each at 8 per share paid up. Trade receivables realised 1,50,000. Bills payable was settled for 38,000. Income tax authorities fixed the taxation liability at 72,22,000. Creditors were finally settled with the cash remaining after meeting liquidation expenses amounting to 8,000. You are required to: () Calculate the number of equity shares and preference shares to be allotted by Wye Limited in discharge of purchase consideration. (i) Prepare the Realisation account, Cash/Bank account, Equity shareholders account and Wye Limited account in the books of Exe Limited. (ii) Pass journal entries in the books of Wye Limited.