Page 125 - DCOM205_ACCOUNTING_FOR_COMPANIES_II

Accounting for Companies – II

notes Solution
calculation of purchase consideration by net payment method

Total No. of shares to be issued by Sunita Ltd. = (1, 00,000×3/2) – Fractions of shares
= 1, 50,000 – 75 = 1, 49,925 shares
Face value of 1, 49,925 shares @ ` 20 = ` 29, 98,500
+Payment in cash for 75 shares @ ` 52 = ` 3,900
Total Purchase Consideration = 30,02,400

Journal of kavita ltd. (transferor company)
Date particulars l.f. ` `
2011
March 31 Realisation A/c Dr. 30,00,000
To Intangible Assets A/c 6,50,000

To Fixed Assets A/c 15,00,000
To Current Assets A/c 8,50,000
(Being assets taken over by Sunita Ltd. transferred
to Realisation A/c)
Creditors A/c Dr. 5,00,000
To Realisation A/c 5,00,000
(Being trade liabilities taken over by Sunita Ltd.
transferred to Realisation A/c)
Sunita Limited Dr. 30,02,400
To Realisation A/c 30,02,400
(Being purchase consideration receivable from
Sunita Ltd.)
Equity Share Capital A/c Dr. 10,00,000
General Reserve A/c Dr. 5,00,000
Capital Red. Reserve A/c Dr. 5,00,000
Development Rebate Reserve A/c Dr. 2,00,000
Debentures Redemption A/c Dr. 3,00,000
To Equity Shareholders’ A/c 25,00,000
(Being capital and various reserves transferred to
Equity Shareholders’ A/c)

Equity Shareholders’ A/c Dr. 2,00,000
To Unwritten off Expenses A/c 2,00,000
(Being unwritten off expenses transferred to
Equity Shareholders’ A/c)
Cash A/c Dr. 1,40,000
Realisation A/c Dr. 10,000
To Current Assets (Debtors) A/c 1,50,000

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