Page 121 - DCOM205_ACCOUNTING_FOR_COMPANIES_II

Accounting for Companies – II

notes Purchase Consideration 1,63,250
Total number of shares = 1,63,250/10=16,325

Journal of shastri limited
Date particulars l.f. ` `
2010
Dec 31 Business Purchase A/c Dr. 1,63,250
To Liquidators of Kapoor Ltd. 1,63,250
(Being purchase consideration payable to the liquidators
of Kapoor Ltd.)
Cash A/c Dr. 2,500
Debtors A/c Dr. 60,000
Stock A/c Dr. 90,000
Buildings A/c Dr. 70,750
To 8% Debentures A/c 50,000
To Debenture Interest Payable 10,000
To Business Purchase A/c 1,63,250
(Being above-mentioned assets and liabilities taken over
and the balance adjusted into Buildings A/c)

Liquidators of Kapoor Ltd. Dr. 1,63,250
To Equity Shares Capital A/c 1,63,250
(Being purchase price paid off by the issue of equity shares)
Balance sheet of shastri ltd.
as on 31 December, 2010
st
liabilities ` assets `
Share Capital: Fixed Assets:
Authorised, Issued Subscribed & Paid up Buildings 70,750
Capital (16,325 equity Shares of ` 10 each
Fully paid) 1,63,250 Current Assets:
Reserve & Surplus: - Stock 90,000
Secured Loans - Debtors 60,000
8% Debentures 50,000 Cash 2,500
Debenture Interest Payable 10,000
2,23,250 2,23,250
Illustration 3

Abhijeet Ltd. has just recovered from a great financial difficulty. Its Balance Sheet as on December
31, 2010 was as follows:
liabilities ` assets `
Equity Shares Capital 12,00,000 Buildings 8,00,000
10% Preference Shares Capital 8,00,000 Plant & Machinery 4,00,000

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