The summarised Balance Sheets of A Ltd and B Ltd as at 1st April, 2018 are...

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The summarised Balance Sheets of A Ltd and B Ltd as at 1st April, 2018 are as under: Balance Sheets of A Ltd. and B Ltd. as at 1st April, 2018 L EQUITY AND LIABILITIES (1) Shareholders' Funds: (a) Share Capital (b) Reserves and Surplus - Reserve (2) Share Application Money Pending Allotment: (3) Non-current Liabilities: (4) Current Liabilities: TOTAL II. ASSETS (1) Non-current Assets: (a) Fixed Assets (a) Trade Payables-Creditors TOTAL Particulars (1) Profit and Loss Account (2) Current Assets: (a) Inventories (b) Trade Receivables - Debtors (d) Cash and Cash Equivalents - Cash and Bank Notes to Accounts: (1) Share Capital (i) Tangible Assets- Land and Building Authorised Capital: Equity Shares of ... each Preference Shares of *... each 2. 3. Issued and Subscribed Capital: 8,000 Equity Shares of 15 each fully paid 10,000 Equity Shares of * 10 each fully paid Particulars Note No. (2) A Ltd. (3) (3) 1,20,000 60,000 10,000 30,000 2.20,000 1,40,000 30,000 10.000 40,000 2.20,000 A Ltd. ₹ ? ? ? 1,20,000 B Ltd. (2) (4) 1,00,000 50,000 20,000 10.000 1,80,000 1,20,000 15,000 25,000 20,000 1,80,000 B Ltd. ₹ 1,20,000 The above two companies agree to amalgamate and form a new company AB Ltd on the following conditions: AB Ltd will take over all the assets and liabilities of A Ltd and B Ltd. 1. ? ? ? 1,00,000 1,00,000 The entire purchase consideration will be satisfied by the issue of 28,600 equity shares of 10 each of AB Ltd. For the purpose of amalgamation, the value of each equity share is agreed at 25 and 12.50 for A Ltd and B Ltd respectively. The creditors are to be paid off by AB Ltd. 4. You are required to: (i) Pass journal entries to close the books of A Ltd and B Ltd.; (ii) Pass journal entries in the books of AB Ltd; and (iii) Prepare the Balance Sheet of AB Ltd.; The summarised Balance Sheets of A Ltd and B Ltd as at 1st April, 2018 are as under: Balance Sheets of A Ltd. and B Ltd. as at 1st April, 2018 L EQUITY AND LIABILITIES (1) Shareholders' Funds: (a) Share Capital (b) Reserves and Surplus - Reserve (2) Share Application Money Pending Allotment: (3) Non-current Liabilities: (4) Current Liabilities: TOTAL II. ASSETS (1) Non-current Assets: (a) Fixed Assets (a) Trade Payables-Creditors TOTAL Particulars (1) Profit and Loss Account (2) Current Assets: (a) Inventories (b) Trade Receivables - Debtors (d) Cash and Cash Equivalents - Cash and Bank Notes to Accounts: (1) Share Capital (i) Tangible Assets- Land and Building Authorised Capital: Equity Shares of ... each Preference Shares of *... each 2. 3. Issued and Subscribed Capital: 8,000 Equity Shares of 15 each fully paid 10,000 Equity Shares of * 10 each fully paid Particulars Note No. (2) A Ltd. (3) (3) 1,20,000 60,000 10,000 30,000 2.20,000 1,40,000 30,000 10.000 40,000 2.20,000 A Ltd. ₹ ? ? ? 1,20,000 B Ltd. (2) (4) 1,00,000 50,000 20,000 10.000 1,80,000 1,20,000 15,000 25,000 20,000 1,80,000 B Ltd. ₹ 1,20,000 The above two companies agree to amalgamate and form a new company AB Ltd on the following conditions: AB Ltd will take over all the assets and liabilities of A Ltd and B Ltd. 1. ? ? ? 1,00,000 1,00,000 The entire purchase consideration will be satisfied by the issue of 28,600 equity shares of 10 each of AB Ltd. For the purpose of amalgamation, the value of each equity share is agreed at 25 and 12.50 for A Ltd and B Ltd respectively. The creditors are to be paid off by AB Ltd. 4. You are required to: (i) Pass journal entries to close the books of A Ltd and B Ltd.; (ii) Pass journal entries in the books of AB Ltd; and (iii) Prepare the Balance Sheet of AB Ltd.;