Solution to question on 7/3/2018

In the Books of Z Ltd

Realisation A/c        64
    to Fixed Assets    30
To Current Assets    34
--------------------------------------
Provision for Depreciation   24
Current Liabilities    15
Unsecured loan form Y Ltd 10
     To realisation a/c         49
--------------------------------------
Y Ltd 1.2
    To Realisation A/c  1.2
-------------------------------------
Equity Sha Holders 13.8
   to Realisation Acc   13.8
-------------------------------------
Equity Sha Cap acc          5
Rese n Surp    10
  To Equity Sha Holders acc  15
---------------
Equity Shares of Y Ltd 1.2
      To Y Ltd    1.2
--------------------
Equity Sha Holders  1.2
      To Eq Sh Of Y Ltd acc 1.2





In the Books of Y Ltd

Business Purch Acc   1.2
  To Liquidator of Z Ltd  1.2
------------
Fixed Assets      6
Current Assets     34
   To CL                       15
    To Unsecured Loan from Z Ltd  10
    To Business Purch Acc  1.3
     To Cap Reserv   13.8
-----------------------------
Liquidator of Z Ltd 1.2
   To Eq Share Cap    1.0
    To Securities Prem Acc  0.2
----------------------------------
Unsecured loan from Y Ltd
       to Loan to Z Ltd




Working Notes
-----------------
50 lakhs divided by 5 =10 lacs X Rs 12= 1.2 crores
Number of Eq Shares to be issued 10 lakhs


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