Accountancy, asked by mehragaurav617, 8 months ago

ILLUSTRATION 3. Balance Sheet of Dreamers Ltd. as on 31st March, 2017 stood
in lakhs
64
under
1. Equity and Liabilities
(1) Sharcholders Funds
(a) Share Capital:
10% Preference Shares of 100 each
Equity Shares of 10 each
(b) Reserves and Surplus :
General Reserve
(2) Non-current Liabilities
12% Debentures
(3) Current Liabilities
36
20
Total Equity and Liabilities
174
24
II. Assets
(1) Non-current Assets
(a) Fixed Assets
(b) Investments
(2) Current Assets
Total Assets
20
Total Assets
174
Performers Ltd. signified their agreement to takeover the assets and liabilities of Dreamer
td. as per the following terms and conditions :
() Fixed assets at 90% of the book value.
(ii) Investments at 10% above the par value.
(iii) Current assets and liabilities at book value except that stock-in-trade at cost amounting
to 10 lakh was agreed to be taken over at a discount of 20%.
(iv) 12% Debentures are to be discharged at a premium of 15% by issuing 12% debentures
of Performers Ltd.
(1) Preference shareholders are to be discharged at a premium of 15% by issuing 10%
preference shares of 100 each.
(vi) The equity shareholders in Dreamers Ltd. are to be issued 5 equity shares of 10 each
in Performers Ltd. for every 3 shares held by them.
Work out the consideration for the takeover under : Net assets method; and Net payment
ethod.
how to solve other current assets in net asset method ​

Answers

Answered by rishi1121
0

Explanation:

Equity and Liabilities (1) Sharcholders Funds (a) Share Capital: 10% Preference Shares of 100 each

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