Question 2 The summarized Balance Sheet of A Ltd. and B Ltd. as at 31st March, 2022 are as under: Particulars A Ltd. (in ₹) B Ltd. (in ₹) Equity and Liabilities Equity shares of ₹10 each, fully paid up 30,00,000 24,00,000 Securities Premium Account 4,00,000 - General Reserve 6,20,000 5,00,000 Profit and Loss Account 3,60,000 3,20,000 Retirement Gratuity Fund Account 1,00,000 - 10% Debentures 20,00,000 - Unsecured Loan (including loan from A Ltd.) 6,00,000 8,20,000 Trade Payables 1,00,000 3,40,000 Total 71,80,000 43,80,000 Assets Land and Buildings 28,00,000 21,00,000 Plant and Machinery 20,00,000 7,60,000 Long term advance to B Ltd. 2,20,000 - Inventories 10,40,000 7,00,000 Trade Receivables 8,20,000 5,20,000 Cash and Bank 3,00,000 3,00,000 Total 71,80,000 43,80,000 B Ltd. is to declare and pay ₹ 1 per equity share as dividend, before the following amalgamation takes place with Z Ltd. Z Ltd. was incorporated to take over the business of both A Ltd. and B Ltd. The authorized share capital of Z Ltd. is ₹ 60 lakhs divided into 6 lakhs equity shares of ₹ 10 each. As per Registered Valuer the value of equity shares of A Ltd. is ₹ 18 per share and of B Ltd. is ₹ 12 per share respectively and agreed by respective shareholders of the companies. 10% Debentures of A Ltd. to be issued 12% Debentures of Z Ltd. at par in consideration of their holdings. A contingent liability of A Ltd. of ₹ 2,00,000 is to be treated as actual liability. Liquidation expenses including Registered Valuer fees of A Ltd. ₹ 50,000 and B Ltd. ₹ 30,000 respectively to be borne by Z Ltd. The shareholders of A Ltd. and B Ltd. is to be paid by issuing sufficient number of fully paid up equity shares of ₹ 10 each at a premium of ₹ 10 per share. Assuming amalgamation in the nature of purchase, you are required to pass the necessary journal entries (narrations not required) in the books of Z Ltd. and Prepare Balance Sheet of Z Ltd. immediately after amalgamation of both the companies.