-

Advanced Accounting

Amalgamation

Lecture No.- 3

By- Nitin Goel

of previous lecture
Questions
1 Basic
Concepts&
to be covered
1 Basic
Concepts&
Questions
 Sch 50L
Y (xd >

XL+ C . - -

↓ ↓
31/3
=
XLtd Creditor : 80L
LOL
.

Y Ltd : Debto -
>
-

&
XL + - Y Ld .

Crea- Go L Debtor SOL Destor 452

Cre .
55L

(ind .
+20L Linc -
X(d :
201)

E
2 :
A
Juk

Debtor 45L
&
To (sed ·
55C

To vid 20L
Creditor
* L+d
95L 105
Des To D ebton GOL
Creditors
X
II 5L
to
X
185L

(G0L + 55L) F

202
(801 +
451) -

20L

c ⑳
 ③ &

CAF
&
② I -
Bus. Purch
-

S
I
7
To

-
Vendor
1) Assets

-
To lics
2) ASHA
-
-

Fedor To lic

-
To Bus Purch

2)
To
Shar - 3) &
Vendor
up
-

↓
To Sh
up
-

To Bank
.

Zo Bank
 Purchase Consideration
#05
(Net Payment Method)
Amount (Lakhs)
Payment To
Payment In
Workings
- r

D ESH
Equity
share
(6002x3/2) X10
9000

of
shares 10 each
900 Lakh
equity -

9000
-

Books Pla Journal Entries

of
:

Dr -

Cr -

(Lamns) (Leuns

1) Business Purchase Al-Ar

9000

9000
To
of A/C
~( +.
Liquidator
1
Being busines
of
rid.
acquires
Merger
- Plant &
Machinery All
-

Av 5000

Fumiture 1750
,
Fintore &
Fittings Al-Ar -

404)
Stock -Br
A/c
1820
DeStor Al-Ar
609
Bank A/c-Dr
So
BIR A/2-Av

ferenceus p C
.
. To
Sundy
Provisions
70 2

cap
.

Sh
.

900 463
is To Creditor
6000 3000
=
1000
To VL +d
of
12 + Deb .

(825) TO PALA/C
825

AA
To Genera ⑳
(3200 3000)
-

ResunAl
510
To ALL
Foreign
-
Project Res

9000
To Busine Porch an
3) Liquidator of WLdA/c-Dr 9000
9000

Equity All
To Share
Cop
-

(Being consideration
discharged
1000
4) 12% Deb
of ULd .

Alc
-
Dr
1000
To 13 % Debentus A/L

I
5) POLA/C -
Dr
I
To Bank A/c

(Being expans paid by

Plea
.

So
6) B/P A/ Dr
-

So
To BIR AlL

(2iy mutual
owing cancelled)
 P(+d
I
Balanc Sheet -

Amount
Note No -

(Leuns)
Equity & Liabilities

1) Shareholder
foods
I 27000
Shar
a) pital 16704
2
b) Rescues & Surplus

Non
4) current libilities
3 1000

as
long
Team
Borrowing s

3) current libilities
Y 1583
4) Trade
Payables 5 2532
5) Short Team Provisions

TOTAL 45819
Assets
Assets
1) Not Current

PPE & ASHE

9) Intangible
6 29054
PPE
i)
2) Current ASA

9) Investories (7862 + 7041) 11903

7
Trade Receivables 3140
b)
f
C Gone ash Equidents 1722

TOTAL 45819
 Not to ACCOUNTS
15000

1) Share
pital + 9000
24000
-

of
share 10 each
2400 Lak
equity 24000
-

Loot of above 900 Lakh

equity
share issued

for considerative other than

ush)

2) Rescue
& surplus
3000
Securities Premium
310

Foreign Project Resum

9700
General Ris .

(9500 + 200)
3694
POLA/ (2870 + 825 -

1 -

16704
-

3) LTB
1000
13 % Debentury
n) Trade
Payables
Creditors (1080 + 463) 1543
8) Cash & Lesh Eg .

Bank
B(P (120 -

80) -
40 1722
1583
-
(1114 + 609 -

1)
5) STP

Sundy
Provisions
(1850 +
702)
2559

PPE
6)
6000
Land &
Building
19000
Plant & Mach.
(100 +
5000)

Fittings (2304
Fumitin Fint 1750) 4054
,
& +
-

&

29057
-

7) Track Rec .

Debtor (2120 + 1020) 3/40

BIR
(80-80)
-

3140
-
 Method
Purchase consideration
Payment
Net
#Q6 Harita : :

Amount
Payment to
Payment In workings
1) ESH
Equiyshaus (64000X3) x 12 1152000

10 each at 12
96000
equity
shars
of -

L152000
-

Purchase Consideration : Net Assets Method

Narayanled
:

consideration
ischarge
of
:

Plant & Mach. (202-154) 17

0000
0
/ S

Trade RC circles 125000 Preferen Shareholds

Istry 500000
I
·
Shans 100 each S

Inventory (15,000
135 000
,

) (7500
-
10 % 2
5000 Sh X 100
x .

S
=

Cash 100000
& Bank
Equing Shareholders

Trade
Payables (225000 Eg .
shaus (BJ) 860000
S /

Desentin (5L-5t) (475000) (1360 , 00

-
50 0000)
-

1360000 No =
860000
- -
-
-
10
=
86000 Shares
 Books
of
(d
Hari
Narayan
.

Debit Credit

Porchan 25/2000
1) Business All-Du

To 1152000
Liquidator of Havi Lad .

Ltd 1360 000

To Liquidator
of Narayan
.

Haritrd
-
Merger Plant & /-A
1280000
)
Machiney 152000
Trade Receivables A/c-Dr
100000

Inretory Al-Du
10 8000
Cash & Bank
Al-Av
120000

*
To Trade
Payoths 368000
(88000 -

5/2000)
To Genera Ru
1150000
To Business Purchas

: Shaprs P C
.

5/2000
640, 000 vs 1152000 ie .
 3) Liquidator Al-Av 1 15 2000
of
Havi Lad .

Share 960000
(96000 X10) To
Equity cap Alc
.

192000
To Securities Purium Alc
(96000x2)
(d : Purchas
Narayan 1700 000
4) Plant &
Machiney Al-Ar
125000
Trade Resinles A/C-Du
135000
Inventory AK-Du
100000
Cash & Bank All-A
225000
To Trade
Path 475000
To D23
of Narayan
.
(d
1360000
To Busines Purchase

5) Liquidator )c-Dr 1360000

of Narayan (td
.

500000
To 15 %-
pry .
Shau
Capital /C
860000
Equity
To Star
Spitel
 475000
6) Des All-D-
of Narayan
c .

475000
To Debenture A/c
 ↑

S 1000 des
of
100
each)
- -

old Co 100000
To 10 %
Deb
-

100 000
Al-ye
10 % Deb
of Old 10 .

100000
T 127-Debentures A/c

0
No
0000 1000 Des
=
=

- -
-
⑳
-
-

To Old Co 9500 /10000-54)

of
10 % Deb .

95000
Old 10 Al-Sr
10 % D23
of
.

9500
To 12+ Debenture A/2

9500
each
of
No .
= = 950 dus. 100
 - >
-
- -
-

Old 20. AK
110000 (10000 + Off
To Des
of
110000
De3
of Old 10-A/c-DV
110000
7 12 % Deetus Alc
100 each
No- 110000 1100 des
of
.
=
=
-

100 + 10 = /10
108

-
&3
-

To old Co-Al 110000 (100000 +

104)
Deb
110000
-B
$26 Old 10. A/c
o 100000 (1000 X 100)
To 12 % Debentures A/c
Premium Ala
1000 (1800X10)
To
Securities
No
- =
10000 = 1000 des
110
lo each a+ 110
 -

12005 (1
-
-

- -

)
+ 20 +
To Deb
of Old Co-A/c

120000
Deb. Old Co A/c-Dr
of
.

Discount on Issue -fr 500 (1250 x 4)

To 12 % D2 enteres A/C 12500 (1250 X

100)

=
2000
No 1250
dus
=
Homework

H(w :
PO617 .
2 Min Summary

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concepts & Questions