On 1.4.2016, A Ltd. had the following capital structure :

On the above date, B Ltd. absorbed A Ltd. under the following terms and conditions:
(1) B Ltd. will take over all the assets and liabilities of A Ltd. at book value.
(2) B Ltd. will pay for ----Equity shareholders ---- 50,000 equity shares of ₹ 10 each and 5,000, 12% debentures of ₹ 100 each.

Preference shareholders ---- 13% preference shares of an equal amount. 

Debentureholders ---- to be redeemed by B Ltd. at par.
Liquidation expenses ---- ₹ 25,000. 

You are required to calculate purchase consideration.

Transcribed Image Text:

1,00,000 Equity Shares of 10 each 10,000, 12% Preference Shares of* 10 each 50,000, 10% Debentures of 10 each ₹ 10,00,000 1,00,000 5,00,000 16,00.000