A Limited and B Limited were amalgamated on 31 st March, 2025 to form a new company named AB Limited. Prior to the amalgamation, the Balance Sheets…

A Limited and B Limited were amalgamated on 31 st March, 2025 to form a new company named AB Limited. Prior to the amalgamation, the Balance Sheets of the two companies stood as under: Balance Sheets of A Limited and B Limited as at 31.03.2025 Particulars Note No. A Limited (₹ lakhs) B Limited (₹ lakhs) I. Equity and Liabilities (1) Shareholders' Funds (a) Share Capital 1 1,188.00 1,026.00 (b) Reserves and Surplus 2 453.60 356.40 (2) Non- Current Liabilities Long Term Borrowings 3 90.00 48.00 (3) Current Liabilities Trade Payables 428.40 189.60 Total 2,160.00 1,620.00 II. Assets (1) Non – Current Assets (a) Property, Plant and Equipment 972.00 702.00 (b) Non-Current Investments 162.00 54.00 (2) Current Assets (a) Inventories 350.00 275.00 (b) Trade Receivables 360.00 380.00 (c) Cash and Cash Equivalents 4 316.00 209.00 Total 2,160.00 1,620.00 Notes to Accounts: Particulars A Limited (₹ lakhs) B Limited (₹ lakhs) 1. Share Capital Equity shares of 100 each 864.00 810.00 8% Preference shares of 100 each 324.00 216.00 Total 1,188.00 1,026.00 2. Reserves and Surplus Capital Reserve 162.00 108.00 General Reserve 183.60 162.00 Investment Allowance Reserve 54.00 Profit and Loss Account 108.00 32.40 Total 453.60 356.40 3. Long Term Borrowings 8% Debentures of 100 each 90.00 48.00 Total 90.00 48.00 4. Cash and Cash equivalents Cash at Bank 316.00 209.00 Additional Information: (i) The Authorized Capital of AB Limited will be 100 lakhs Equity Shares of 10 each and 7.50 lakhs 9% Redeemable Preference Shares of 100 each. (ii) AB Limited will issue four Equity Shares for each Equity Share of A Limited. The face value of the equity share of AB Limited is 10and the issue price is 25 per share. (iii) AB Limited will issue five Equity Shares for each Equity Share of B Limited. The face value of the equity share of AB Limited is 10and the issue price is 25 per share. (iv) Preference shareholders of A Limited and B Limited are issued an equivalent number of 9% Redeemable Preference Shares of 100 each of AB Limited at an issue price of 200 per share. (v) Existing 8% Debenture holders of both the Companies will get two 9% Redeemable Preference Shares of 100 each for three debentures held by them at an issue price of 150 per share. (vi) All Current assets and Current liabilities of A Limited and B Limited are taken over by AB Limited at book value except Inventory which is taken over at 4% lesser than their book value and Trade Receivables for which a provision for doubtful debts is created at 5%. (vii) AB Limited will be required to maintain the Investment Allowance Reserve for further 3 years. Prepare the Balance Sheet of AB Limited as at 31 st March, 2025, after amalgamation has been completed, on the basis of amalgamation in the nature of purchase, along with Notes to Accounts as per Schedule III of Companies Act, 2013.