Question

A Ltd and B Ltd were amalgamated on and from 1st April, 2018. A new company AB Ltd was
formed to take over the business of existing companies. The balance sheet of A Ltd and B
Ltd as on 31st March, 2018 are given below:
(Figures in '000s)
A Ltd
Liabilities
Share Capital:
Equity shares of Rs.10
B Itd Assets
Fixed Assets
1600 Less: Depr.
2400
A ltd
4,800
__800
4,000
1600
B Itd
3,200
__600
2,600
600
Investments
1200
800
600
600
12% Pref Shares of
Rs.100 each
Reserves and Surplus:
Capital Reserve
General Reserve
Profit & loss a/c
Secured
Loans
Trade creditors
Tax Provision
800
Current assets:
Stock
600 Debtors
200 Cash & Bank balance
800
1200
1600
1200
800
600
1200
400
1600
1200
800
9600
400
200
5200
9600
5200
Other Information:
(1) Preference shareholders of the 2 companies are issued equivalent number of 15%
Preference shares of AB Ltd at an issue price of Rs. 125 per share.
(i) AB Itd will issue one equity share of Rs.10 each for every share of A ltd and B Itd. The
shares are issued at a premium of Rs.5 per share.
Prepare the balance sheet of AB Itd on the assumption that the amalgamation is in the
nature of merger.​

Answer 1

Answer:

what is the question.....