Page 1 :
You are required to show (i) the opening Balance Sheet of the New Company, Workmen's Profit Sharing Fund, Amalgamation of Companies, Amalgamation of Companies, Calculation of Purchase Price [ Contd. 1, 250, 251, Ralance Sheet of Short Ltd., Gross Assets, Assets, Rs., Ra., Rs., Rs., Machinery, Stock, Debtors, Less R. D. D., Debentures, Trade Creditors, Employees Provident Fund, Liabilities, 25,000, 79,500, ..., 34,500, Share Capital :, 1,500 Shares of, Rs. 20 cach, Trade Creditors, Workmen's Proft Sharing, Fund, 4,000, 5,000, 500, 10,000, 5,000, 1,500, ..., 30,000, 3.000, 1,000, ..., 4,500, 3,000, Cash, R. D. D., 500, ..., 1,000, Net Valuation, 500, 34,000, Add 5% for Goodwill, 63,000, 3,150, 34,000, 30,000, 1,500, Purchase Price, 66,150, 31,500, 6,615, 3,150, (1) The assets of Long Ltd. are taken over at a reduced valuation es, with the exception of Buildings which are accepted at book value, Closing Entries in the Books of Long Ltd., Step II:, (2), Rs. 5.000 respectively., Group I: Closing the accounts shown in, balance sheet, L.F., Rs., Rs., Realisation Account, To Buildings A/c, To Machinery A/c, To Investments A/c, To Stock A/c, To Debtors A/c, To Cash A/c, (Being transfer of assets to realisation, account at book values, Dr., 86,500, businesses as goodwill, 15,000, 55,000, 3,000, 5,000, 7,000, 1,500, paid shares of Rs. 10 cach., You are required to show (1) the opening Balance Sheet of the New Compan, and () Closing Entries in the books of Long Ltd., Solution, Calculation of Purchase Price, Step I:, 10,000, 5,000, 1,300, Debentures A/c, Trade Creditors A/c, Employees' Provident Fund A/c, To Realisation A/c, (Being transfer of liabilities to realisation, account at book values), Dr., Dr., Particulars, Long Ltd. Short Ltd., Dr., 16,300, Rs., Rs., Assets as revalued, Buildings, Machinery, Investments, Stock, Debtors, Cash, 15,000, 49,500, 2,700, 4,500, 6,300, 1,500, ..., 50,000, 17,000, 2,000, 1,000, 24,000, Dr., Share Capital Account, Generel Reserve A/c, Dividend Equalisation Fund Alc, Profit & Loss A/c, To Shareholders' A/c, (Being transfer of sundry accounts, .*., Dr., Dr., Dr., ..., 5,000, 5,000, 500, 70,000