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prepare the balance sheet of a ltd after absorption of b ltd 620764

A Ltd. absorbs B Ltd. by issue of 6 shares of Rs.10 each at a premium of 10% for every 5 shares of B Ltd. For the purpose of absorption, it was agreed that trade investment held by B Ltd. will realize their book value and goodwill of B Ltd. will be Rs.1,00,000.

The balance sheets of the two companies were as follows:

Liabilities

A Ltd.
Rs.

B Ltd.
Rs.

Assets

A Ltd.
Rs.

B Ltd.
Rs.

Share Capital:

Investments:

Equity Shares of Rs. 10 Each

20,00,000

15,00,000

Trade

1,50,000

1,00,000

Reserves

12,00,000

7,50,000

Share at A Ltd. at Cost

3,00,000

Trade Creditors

2,00,000

1,50,000

Other Assets

32,50,000

20,00,000

34,00,000

24,00,000

34,00,000

24,00,000

Prepare the balance sheet of A Ltd. after absorption of B Ltd.

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