Colour Sdn. Bhd. was formed to acquire all the assets and liabilities of Blue Sdn. Bhd....

 

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Colour Sdn. Bhd. was formed to acquire all the assets and liabilities of Blue Sdn. Bhd. and Red Sdn. Bhd. as on 3112.Year 2 Following are the balance sheets of Blue Sdn. Bhd. and Red Sdn. Bhd. as at 31.12.Year 7 Blae Sdn. Bhd. Red Sdn. Bhd. RM RM Ficed assets Goodwill Prelimirury expenses Current assets 600,000 30,000 2,000 400,000 150,000 80,000 782,000 480,000 Ordinury shares of RMIA cach 10% Preference shares of RM1/ each Share premium Profit und loss account 600,000 100,000 32,000 400,000 30,000 20,000 20,000 10,000 50,000 Creditors 782,000 480,000 Additional information: (1) The authorised capital of Colour Sdn. Bhd. consist of 200,000 6% preference shares of RM1- each und 2,000,000 ordirary shares of RM1/ each. Formation expenses amounted to RM2,000. () The assets were revalued as to: Bise Sdn. Bhd. Red Sdn. Bhd. RM RM Fixed assets Current assets 650,000 120,000 420,000 60,000 (3) The purchase consideration payable by Colour Sdn. Bhd. to the liquidators of Blue Sdn. Bhd. and Red Sdn. Bhd. was as: Blse Sdn. Bhd. RM Red Sdn. Bhd. RM To the preference sharehokders: 6% preference shares To 110,000 the ordinary sharcholders: ordinary shares All of the above mentioned shares were to be issued at par value, and as fully paid up shares. You are required to 660,000 450,000 (a) Determine what a holder of 100 preference shares und a holder of 500 ordinary shares of Blue Sdn. Bhd. would receive on liquidation. (b) Prepare journal entries to close the books of Blue Sdn. Bhd, and open the books of Colour Sdn. Bhd. (d Prepare the balance sheet of Colour Sdn. Bhd. immediately after the amalgamation. Colour Sdn. Bhd. was formed to acquire all the assets and liabilities of Blue Sdn. Bhd. and Red Sdn. Bhd. as on 3112.Year 2 Following are the balance sheets of Blue Sdn. Bhd. and Red Sdn. Bhd. as at 31.12.Year 7 Blae Sdn. Bhd. Red Sdn. Bhd. RM RM Ficed assets Goodwill Prelimirury expenses Current assets 600,000 30,000 2,000 400,000 150,000 80,000 782,000 480,000 Ordinury shares of RMIA cach 10% Preference shares of RM1/ each Share premium Profit und loss account 600,000 100,000 32,000 400,000 30,000 20,000 20,000 10,000 50,000 Creditors 782,000 480,000 Additional information: (1) The authorised capital of Colour Sdn. Bhd. consist of 200,000 6% preference shares of RM1- each und 2,000,000 ordirary shares of RM1/ each. Formation expenses amounted to RM2,000. () The assets were revalued as to: Bise Sdn. Bhd. Red Sdn. Bhd. RM RM Fixed assets Current assets 650,000 120,000 420,000 60,000 (3) The purchase consideration payable by Colour Sdn. Bhd. to the liquidators of Blue Sdn. Bhd. and Red Sdn. Bhd. was as: Blse Sdn. Bhd. RM Red Sdn. Bhd. RM To the preference sharehokders: 6% preference shares To 110,000 the ordinary sharcholders: ordinary shares All of the above mentioned shares were to be issued at par value, and as fully paid up shares. You are required to 660,000 450,000 (a) Determine what a holder of 100 preference shares und a holder of 500 ordinary shares of Blue Sdn. Bhd. would receive on liquidation. (b) Prepare journal entries to close the books of Blue Sdn. Bhd, and open the books of Colour Sdn. Bhd. (d Prepare the balance sheet of Colour Sdn. Bhd. immediately after the amalgamation.

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