The abstract of the Balance Sheet of the AXE Ltd as at 31st March, 2016 are as
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The abstract of the Balance Sheet of the AXE Ltd as at 31st March, 2016 are as follows :
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Liasbilities Equity share capital (100 each). 12% Preference share capital (* 100 each) 13% Debentures 15,00,000 8,00,000 3,00,000 On 31st March, 2016 BXE Ltd agreed to take over AXE Ltd on the following terms: (1) For each preference share in AXE Ltd 10 in cash and one 9% preference share of 100 in BXE Ltd. (2) For each equity share AXE Ltd 20 in cash and one equity share in BXE Ltd of 100 each. It was decided that the share in BXE Ltd will be issued at market price of 140 per share. (3) Liquidation expenses of AXE Ltd are to be reimbursed by BXE Ltd to the extent of 10,000. Actua expenses amounted to 12,500. You are required to compute the amount of purchase consideration.
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Related Book For
Corporate Accounting As Per The Companies Act 2013 Including Rules 2014 And 2015
ISBN: 9789352605569
2nd Edition
Authors: M Hanif, A Mukherjee
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