Answer the Answer the following question. Each question carries 5 marks.

following
questions. 6. State the steps for accounting in amalgamation in the books of

Each amalgamating firm? With journal entries?

question
Answer the following question. Each question carries 10 marks.
carries 2
marks. The following were the balance sheets of the firms Anil and Akbar and Singh
and Dev on 31/3/2003 when they decided to amalgamate their business.
1. What is
Anil & Singh& Anil & Singh&D
Amalgamati Libalities Akbar Dev Assets Akbar ev
on of firms?
Creditors 42,000 54,000 cash at bank 24,000 12,000

2. Sate the Bills Payable 18,000 nil Debtors 33,000 36,000

objectives of
Reserves 24,000 nil Stock 27,000 37,500
Amalgamati
on of firms? Capitals nil nil Furniture nil 25,500

Anil 16,500 nil Motar Vans nil 15,000

3. Pass the
journal entry Akbar 19,500 nil Premises 36,000 nil

for transfer Sing 60,000 Goodwill nil 24,000

the
Dev 36,000
Revaluation
profit to 1 1,50,00
,20,000 0 1,20,000 1,50,000
partners?
The terms of amalgamation were as follows:
4. What is
Revaluation a) The new firm was to take over the assets and liabilities of both the firms
Account? subject to M/s Anil and Akbar meeting their bills payable out of their bank
balance.
5. State the
steps for b) The assets of Anil and Akbar were Valued as follows:
Accounting
in Debtors Rs 30,000: Premises Rs 54,000: Stock Rs 18,000: Goodwill Rs

Amalgamati 15,000.

on, in the
C) The assets of Singh and Dev were valued as follows
books of
amalgamate Debtors Rs 30,000: Furniture Rs 18,000: Stock Rs 28,500: Goodwill Rs 9,000.
d firm?
d) Singh took over the motor car