Question 6: The following is the summarized Balance Sheet of 'A' Ltd. as on 31.3.2015: Liabilities Assets 14,000 Equity share.. of * 100 each fully paid Sundry assets 14,00,000 Discount on issue of debentures 10,000 P & L A/C 18,00,000 10,000 General reserve 90,000 10% Debentures 2,00,000 Trade payables 2,40,000 Bank overdraft 50,000 19,00,000 19,00,000 'R' Ltd. agreed to take over the business of 'A' Ltd. Calculate purchase consideration under Net Assets method on the basis of the following: The market value of 75% of the sundry assets is estimated to be 12% more than the book value and that of the remaining 25% at 8% less than the book value. The liabilities are taken over at book values. There is an unrecorded liability of * 25,000