Balance Sheets of the two firms who
decided to amalgamate were as follows.
Liabilities
AB
XY
Assets
AB
Capitals
A
B
X
Y
25,000
15,000
Cash
Stock
Furniture
2.000
30,000
8,000
1.000
14,000
4,000
10,000
9,000
40,000
19,000
40,000
19,000
The new firm would take over all assets
of old firms. It was agreed that Stock to
be appreciated by 20% and Furniture to
be depreciated 10%.
Calculate purchase consideration of the
firm of A & B.
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