ILLUSTRATION 2. A Ltd. and B Ltd. were amalgamated on and from 1st April, 2008. A new company AB Ltd. was formed to take over the business of existing companies. The balance sheets of A Ltd. and B Ltd. as on 31st March, 2008 are given below: A Ltd. B Ltd. A Ltd. B Ltd. 3,200 Share Capital: Fixed Assets 1,600 Less: Depn. 4,800 800 600 2,400 Equity shares of F10 each 4,000 2,600 12% Preference shares 1,200 of 100 each 800 Investments 1,600 600 Current Assets: Reserves and Surplus Capital Reserve General Reserve 800 600 Stock 1,200 600 1,200 600 Debtors 1,600 800 Profit and Loss A/c 400 200 Cash & Bank Balance 1,200 600 Secured Loans 1,600 800 Trade Creditors 1,200 400 Tax Provision 800 200 9,600 5,200 9,600 5,200 Other Informations : (i) Preference shareholders of the two companies are issued equivalent number of 15% preference shares of AB Ltd. at an issue price of (ii) AB Ltd. will issue one equity share of. shares are issued at a premium. 125 per share. 10 each for every share of A Ltd. and B Ltd. The the assumption that the amalgamation is in the nature of merger 5 per share. Prepare the balance sheet of AB Ltd. on ILLUSTRATION 4. Taking the same data of Illustration 2, prepare the Balance Sheet of AB Ltd. on the assumption that the amalgamation is in the nature of a purchase