A Ltd. has acquired the business of B Ltd., whose Balance Sheet as at 31st March, 2024 is as under: I – Equity and Liabilities : 1. Shareholders’ Funds (a) Equity Share Capital (₹ 100 each) ............................................... 16,00,000 6% Preference Share Capital (₹ 100 each) .............................. 8,00,000 Sub-total 24,00,000 (b) Reserves and Surplus Capital Reserve ................................................................. 2,00,000 Profit and Loss Account ...................................................... 1,00,000 Workmen Compensation Reserve (expected liability ₹ 10,000) ............ 16,000 Sub-total 3,16,000 2. Non-Current Liabilities : 6% Debentures ....................................... 4,00,000 3. Current Liabilities : Trade Payables ................................................................. 2,40,000 Other Current Liabilities (Interest payable on debentures) ................. 24,000 Sub-total 2,64,000 Total Equity & Liabilities 33,80,000 II – Assets : 1. Non-Current Assets (a) Property, Plant and Equipment Land and Building ............................................................ 8,00,000 Plant and Machinery ........................................................ 12,00,000 Sub-total 20,00,000 (b) Intangible Assets Goodwill .................................................................. 4,80,000 Patents .................................................................... 1,00,000 Sub-total 5,80,000 2. Current Assets (a) Inventories ................................................................. 3,00,000 (b) Trade Receivables ............................................................ 3,60,000 (c) Cash and Cash Equivalents ................................................... 1,40,000 Sub-total 8,00,000 Total Assets 33,80,000 A Ltd. was to take over all assets (except cash) and liabilities (except for interest due on debentures) and to pay the following amounts : (i) ₹ 4,00,000, 7% Debentures (₹ 100 each) in A Ltd. for the existing debentures in B Ltd.; for the purpose, each debenture of A Ltd. is to be treated as worth ₹ 105. (ii) For each preference share in B Ltd., ₹ 10 in cash and 9% preference shares of ₹ 100 each in A Ltd. (iii) For each equity share in B Ltd., ₹ 20 in cash and one equity share in A Ltd. of ₹ 100 each having market value of ₹ 140. (iv) Expenses of liquidation of B Ltd. are to be reimbursed by A Ltd. to the extent of ₹ 20,000. Actual expenses amounted to ₹ 25,000. A Ltd. valued Land and Building at ₹ 11,00,000, Plant and Machinery at ₹ 13,00,000 and Patents at ₹ 40,000 of B Ltd. for the purpose of amalgamation. Pass necessary journal entries in the books of A Ltd. and B Ltd.33:["$","div","MAINS_2024_Commerce-I_Q <!--qid:MAINS_2024_Commerce-I_Q2-->
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