Yoursquore required to pass the essential journal entries, Ask an Expert

Accounting

Problem:

A Ltd. Obtains B Ltd.for the consideration of Rs.38,00,000 to be satisfied in form of fully paid equity shares of Rs.10 each. The balance sheets of two companies on 31st Dec.2005,the date of acquisition,were as follows:

Balance Sheet as on 31st Dec.,2005

Liabilities	Rs.	Rs.	Assets	Rs.	Rs.
Share capital: Equity shares of Rs.10 each	40,00,000	25,00,000	Sundry assets	96,00,000	58,00,000
General reserve	15,00,000	30,000
Development rebate reserve	3,00,000	1,00,000
Export profit reserve	6,00,000	4,00,000
Profit & loss A/c	12,00,000	9,00,000
Sundry liabilities	20,00,000	16,00,000
	96,00,000	58,00,000		96,00,000	58,00,000

Required:

You’re required to pass the essential journal entries in books of A Ltd.(transferee company)when combination is by way of (i) merger.Also prepare the resultant Balance Sheet supposing that the Development Rebate Reserve and Export Profit Reserve are needed to be continued.

View complete question

Accounting Basics, Accounting

Category:- Accounting Basics
Reference No.:- M910230

Have any Question?Write your Review or question?

Related Questions in Accounting Basics

Question introduction you are a consultant hired by a

Question: Introduction: You are a consultant hired by a consumer products research company to analyze the packaging of various consumer products. Your first assignment is to go into a retail store and pick three products ...

Question - on january 1 20x1 mighty entity pays the fair

Question - On January 1, 20X1, Mighty Entity pays the fair value of $50,000 for a new piece of machinery with an estimated useful life of 8 years. The machine has a drum that must be replaced every four years and costs $ ...

Question - at the end of 2016 retained earnings for the

Question - At the end of 2016, retained earnings for the Baker Company was $2,550. Revenue earned by the company in 2016 was $2,800, expenses paid during the period were $1,500, and dividends paid during the period were ...

Question - richard starts his own business in 2016 with

Question - Richard starts his own business in 2016 with $2,000 owner's capital. In 2016, he bought 10 textbooks at $1,000 and sold 5 of them at $600. There is no other transaction during 2016. What is the cost of goods s ...

Question - given2018 pretax accounting income 4000002018

Question - Given 2018 Pretax Accounting Income: $400,000 2018 Municipal Bond Interest Income Included in Pretax Accounting Income: $20,000 2018 Warranty Expense of $70,000 for Accounting Purposes 2018 Actual Warranty Cos ...

Question - cypress ltd inc purchased a 7-year asset in july

Question - Cypress LTD Inc. purchased a 7-year asset in July for $200,000. More than 40% of the total additions for that year were placed in service during the fourth quarter. Neither the straight-line method nor the 150 ...

Question - the samuel company uses the straight-line method

Question - The Samuel Company uses the straight-line method to depreciate its equipment. On May 1, 2014, the company purchased some equipment for $224,000. The equipment is estimated to have a useful life of ten years an ...

Question - on january 1 2018 concord corporation declared a

Question - On January 1, 2018, Concord Corporation, declared a 10% stock dividend on its common stock when the fair value of the common stock was $32 per share. Stockholders' equity before the stock dividend was declared ...

Question what is the principle of charity in at least a

Question: What is "The Principle of Charity"? In at least a paragraph, discuss a time that someone did not extend the principle of charity to you or that you did not extend the principle of charity to someone else. What ...

Assignment -q1 ron has started a new lawn mowing company

Assignment - Q1. Ron has started a new lawn mowing company. The financial transactions of the company in the first month of operating are: On the 1st of June the company buys 3 lawn mowers for $880 each and 2 edgers for ...

4,153,160 Questions Asked
13,132 Experts
2,558,936 Questions Answered

Ask Experts for help!!

Looking for Assignment Help?

Start excelling in your Courses, Get help with Assignment

Write us your full requirement for evaluation and you will receive response within 20 minutes turnaround time.

Ask Now Help with Problems, Get a Best Answer

Recent Questions

Ask Accounting Basics Expert