The following are the balance sheets of AB Limited as on 31st March, 2010, which has two distinct business segments i.e. ‘Division A’ and ‘Division B’. On 31st March, 2010, it was decided to spin off division A by transferring it to a newly established company A Limited which shall issue 15,000 equity shares of ₹10 each to the shareholders of AB Limited. Show how the balance sheet of AB and A will appear after demerger.

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Particulars Assets Freehold property Loans and advances Debtors Bills receivables Stock Bank Liabilities Equity shares of * 10 each General reserve Debentures Secured loan Sundry creditors Bills payable Balance Sheet as on 31st March, 2010 Division A 1,20,000 10,000 25,000 5,000 20,000 - 30,000 Division B 2,50,000 20,000 30,000 10,000 2,00,000 2,00,000 10,000 10,000 36,000 4,000 Total 3,70,000 10,000 45,000 5,000 50,000 10,000 2,00,000 2,00,000 10,000 10,000 66,000 4,000