X Ltd. was incorporated for taking over the business of Y from 1 April 2011. The following was the balance sheet of Y as on 31 March 2011:

Liabilities

Assets

Capital

2,01,600

Land & Buildings

3,20,000

Loan Creditors

2,40,000

Plant & Machinery

56,000

Trade Creditors

1,42,400

Furniture

40,000

Sundry Debtors

1,68,000

5,84,000

5,84,000

The company took over the business with fixed assets and loans on the following terms:

The fixed assets should be depreciated at 10%.
The value of goodwill is estimated at Rs. 1,60,000.
The company realized Rs.1,60,000 from sundry debtors as the agent of the vendor in full settlement and discharged all the creditors by paying Rs.1,36,000 for a commission of 3% on the amount collected and 2% on the amount paid. The loan creditors accepted 10% preference shares of Rs.100 each in discharge of the loans. After realization of the debts and discharge of the liabilities, the total amount due to the vendor was settled by payment of Rs.10,880 in cash and the balance in the shape of fully paid equity shares of Rs.10 each. Show purchase consideration and pass journal entries in the books of the company. Also give the balance sheet of the company after taking over the business of Y.

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