Exe Limited was wound up on 31.3.2016 and its Balance Sheet as on that date is given
Question:
Exe Limited was wound up on 31.3.2016 and its Balance Sheet as on that date is given below:
Wye Limited took over the following assets at values shown as under :
Plant ₹ 12,80,000; Inventories ₹ 7,70,000; and Bills Receivable ₹ 30,000. Purchase consideration was settled by Wye Limited as under :
₹ 5,10,000 of the consideration was satisfied by the allotment of fully paid 10% Preference Shares of ₹ 100 each. The balance was settled by issuing equity shares of ₹ 10 each of ₹ 8 per share paid up. Sundry Debtors realised ₹ 1,50,000. Bills payable was settled for ₹ 38,000. Income-tax authorised fixed the taxation liability at ₹ 2,22,000. Creditors were finally settled with the cash remaininbg after meeting liquidation expenses amounting to ₹ 8,000. You are required to:
(i) Calculate the number of equity shares and preference shares to be allotted by Wye Limited in discharge of purchase consideration.
(ii) Prepare the Realisation Account, Cash / Bank Account, Equity Shareholders Account and Wye Limited Account in the books of Exe Limited.
Step by Step Answer:
Corporate Accounting As Per The Companies Act 2013 Including Rules 2014 And 2015
ISBN: 9789352605569
2nd Edition
Authors: M Hanif, A Mukherjee