a statement showing shareholdings in the new company attributable to the members of 620767
The following are the abridged balance sheets of C Ltd. and D Ltd. as at 31 December 2010:
|
Liabilities |
C Ltd. |
D Ltd. |
Assets |
C Ltd. |
D Ltd. |
|
Share Capital |
16,00,000 |
6,00,000 |
Sundry Assets |
22,40,000 |
8,00,000 |
|
Profit & Loss A/c |
3,00,000 |
— |
Goodwill |
1,60,000 |
2,00,000 |
|
Creditors |
5,00,000 |
5,00,000 |
Profit & Loss A/c |
— |
1,00,000 |
|
24,00,000 |
11,00,000 |
24,00,000 |
11,00,000 |
C Ltd. holds 4,000 shares in D Ltd. at cost of Rs.1,00,000 and D Ltd. holds 200 shares in C Ltd. at cost of Rs.2,80,000 in each case included in the sundry assets. The shares of C Ltd. are Rs.100 each fully paid; the shares of D Ltd. are Rs.50 each Rs.30 paid. The two companies agree to amalgamate and form a new company CD Ltd. on the basis that:
- The shares which each company holds in the other are to be valued at book value having regard to the goodwill valuation given in (ii)
- The goodwill values are C Ltd.: Rs.6,00,000; D Ltd.: Rs.1,00,000
- The new shares are to be of a nominal value of Rs.50 each, credited as Rs.25 paid.
You are required to prepare:
- A balance sheet resulting from merger
- A statement showing shareholdings in the new company attributable to the members of merged companies