Page 82 - 16. COMPILER QB - INDAS 103

Q34. (Dec. 21 – 14 Marks) – (Similar to Q13)

SUN Ltd. and MOON Ltd. amalgamated from 1st January, 20X2. A new Company SUNMOON Ltd. with
shares of Rs 10 each was formed to take over the businesses of the existing companies.
Summarized Balance Sheet as on 31-12-20X2 Rs. In ―000

ASSETS Note No. Sun Ltd. Moon Ltd.
Non-current assets
Property, Plant and Equipment 17,000 15,000
Financial assets
Investment 2,100 1,100
Current assets
Inventory 2,500 5,500
Trade receivables 3,600 8,000
Cash and Cash equivalent 900 800
Total 26,100 30,400
EQUITY AND LIABILITIES
Equity
Equity share capital (of face value of Rs 10 each) 12,000 14,000
Other equity 6,100 5,400

Liabilities
Non-current liabilities
Financial liabilities
Borrowings (12% Debentures) 6,000 8,000
Current liabilities
Trade payables 2,000 3,000
Total 26,100 30,400

Note:
1 Other equity Sun Ltd Moon Ltd
General Reserve 3,000 4,000
Profit & Loss 2,000 1,000

Investment Allowance Reserve 1,000 200
Export Profit Reserve 100 200
6,100 5,400
SUNMOON Ltd. issued requisite number of shares to discharge the claims of the equity shareholders of the
transferor companies. Also the new debentures were issued in exchange of the old series of both the
companies.
Prepare a note showing purchase consideration and discharge thereof and draft the Balance Sheet of

SUNMOON Ltd:
a. Assuming that both the entities are under common control
b. Assuming MOON Ltd is a larger entity and their management will take the control of the entity SUNMOON
Ltd.

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