Page 127 - DCOM205_ACCOUNTING_FOR_COMPANIES_II

Accounting for Companies – II

notes (5) Profit on sale of 3,964 shares `
Sales of 3,964 @ ` 52 2,06,128
–Value of shares @ ` 20 79,280
Profit on sale of shares 1,26,848

(6) Profit on Realisation

realisation a/c
particulars ` particulars `
To Intangible Assets 6,50,000 By Creditors 5,00,000
To Fixed Assets 15,00,000 By Sunita Ltd. 30,02,400
To Current Assets 8,50,000
To Current Assets (Debtors Realisation loss) 10,000
To Equity shareholders 4,92,400
35,02,400 35,02,400

(7) cash a/c
particulars ` particulars `
To Current Assets (Debtors) 1,40,000 By Outstanding Bills 3,50,000
To Shares in Sunita Ltd. 2,06,128 By Equity Shareholders 28
To Sunita Ltd. 3,900
3,50,028 3,50,028
(8) equity shareholders’ a/c
particulars ` particulars `
To Unwritten off Expenses. 2,00,000 By Equity Share Capital 10,00,000
To Cash 28 By General Reserve 5,00,000
To Shares in Sunita Ltd. 29,19,220 By Capital Reserve 5,00,000
By Development Rebate Reserve 2,00,000
By Debenture Redemption A/c 3,00,000
By Realisation A/c 4,92,400
By Profit on shares 1,26,848
31,19,248 31,19,248

in the Books of kavita ltd.
Treatment of liquidation expenses of Kavita Ltd.
(i) When liquidation expenses are borne by Kavita Ltd.
Realisation A/c Dr. 2,500
To Cash A/c 2,500

(ii) When liquidation expenses are borne by Sunita Ltd.-
(a) If these are included in purchase consideration
Realisation A/c Dr. 2,500
To Cash A/c 2,500

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