CORPORATE ACCOUNTING | UNIT-2 | AMALGAMATION (AS-14) | PROBLEMATIC EXPLAINATION (1) @shivanipallela

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[00:00:00]Hello students, welcome back to our channel. So here in this video, we are going to discuss the unit number two problematic explanation of the subject corporate accounting. In previous video, we have already completed unit number one complete problematic explanation.

[00:00:19]Here in this unit number two, complete problematic explanation, I will give you a clarification and I will easily explain. If you are having a new to this chapter also, by watching this video, you will easily understand. Okay? So unit number two name is amalgamation accounting standards 14. So this is the unit two you are having. So here also one theory, one problematic we can expect or both the questions they will ask problematic only. So what is the problematic concepts we are having in unit number two? First one is >> [clears throat] >> in the nature of merger you're having.

[00:00:59]Second method is in the nature of purchase. That means amalgamation in the nature of merger, amalgamation in the nature of purchase. Sometimes they'll ask problematic related to the merger.

[00:01:13]Sometimes they'll ask problematic related to the purchase. So here in this video, we are completely discussing about the topic amalgamation in the nature of merger. In second video, I will discuss the second topic. It is two problematic unit to be perfect. If you are perfect with this two problematic, easily you will attempt the problematic concept from unit number two. And when you understand merger, you will easily understand purchase.

[00:01:45]90% it will be same only. So indirectly you're preparing perfectly one problematic only. Clear? So in this video, unit two topic one problematic we are discussing. That is amalgamation in the nature of merger. Okay, so this is the question. So, what is the question?

[00:02:04]See, problems on amalgamation in the nature of merger. Here in the question only you will able to find out whether they are asking in the nature of merger or whether they are saying in the nature of purchase. See here, A Limited acquired the undertaking of B Limited. Means A is acquired. A is taking B Limited on 31st March 2018.

[00:02:27]Purchase consideration is 2 lakhs 50,000. What is this? 2 lakhs 50,000.

[00:02:35]Okay, so each share is 10 rupees. Okay, 2 lakhs 50,000 total shares. Each share is 10 rupees.

[00:02:44]Clear? Next, the balance sheet of the two companies they have given. A Limited balance sheet, B Limited balance sheet.

[00:02:53]Balance sheet they have given. See here, pass the journal entries in the books of B Limited when amalgamation is in the nature of merger. See here they are saying no, in the nature of merger.

[00:03:07]Okay, they have said. And prepare the balance sheet. Journal entries I will take it I will I will explain in other sum, but here we need to understand how to do the balance sheet of merger. Okay, and also assuming that rebate reserve workmen compensation fund of B Limited are required to be continued in the accounts of A Limited. Like whatever you are having rebate reserves and workmen no, that will be considered in A account only it seems. So, this is the question mark. Here in this question they are asking journal entries and they are asking balance sheet, but I am only discussing balance sheet. Why because journal entries after understanding the concept you can easily write the journal entries. There is not a big issue in that. Okay?

[00:03:52]So, balance sheet also See here.

[00:03:57]>> [clears throat] >> Who is merging? See. A is merging with B. And they're asking only balance sheet of A Limited. Only A Limited balance sheet they're asking, no? So, that's why particulars, note number, amount.

[00:04:12]Balance sheet of A Limited, okay?

[00:04:15]Balance sheet of A Limited. How What will be there in the balance sheet means see here. This is the proforma you need to remember, ma. Okay, what is the proforma? In the first one, you will have equity and liabilities.

[00:04:34]Okay, first concept is equity and liabilities. In this equity and liabilities, first one you're having shareholders funds.

[00:04:48]In this again, shareholders funds you will have share capital.

[00:04:56]B one is reserves and surplus.

[00:05:04]This is fixed proforma. Any question from unit number two of merger, like this only the balance sheet will be, okay? Second one you're having current liabilities.

[00:05:16]Current liabilities, okay? That's it. Then we need to do the total.

[00:05:26]This is total of liabilities. After that, second one you will have assets.

[00:05:34]Okay? This is equity and liabilities, this is assets. In assets, first one you will have non-current assets.

[00:05:45]In non-current assets, you will have fixed assets.

[00:05:56]Okay?

[00:05:57]Second one is current asset.

[00:06:03]In current assets also, you will have three things.

[00:06:08]One is inventories.

[00:06:12]Second one is trade receivables.

[00:06:19]Third one is cash and cash equivalents. That's it. Okay? Now, do the total.

[00:06:30]This is total of assets.

[00:06:33]Okay? So, this is the complete pro forma, mama. Okay? So, in any question like this, you need to do it. Okay?

[00:06:41]Here, I'm doing the working notes for this problem, I think. Okay?

[00:06:45]So, how to do the solution? Okay? So, simply see here.

[00:06:52]They have given the data.

[00:06:56]Okay? So, in the pro forma, what is the first one you are having? Share capital you are having. Okay? What is the pro forma you are having? Share capital. So, what is the share capital of A Limited?

[00:07:11]Okay?

[00:07:14]So, here only we are doing the balance sheet of A Limited, no? So, A Limited share capital is 2 lakhs 50,000. Each share is 10 rupees. So, number of shares, how you will calculate? Simple.

[00:07:27]2 lakhs 50,000 divided by 10. How much it will be? 25,000.

[00:07:34]So, 2 lakhs 50,000 divided by 10, if you are doing means 25,000. Okay? And again, purchase consideration 250,000 will be paid by the each shares. Again, they are saying in the above the table, no?

[00:07:52]How much is the purchase consideration, ma'am? 250,000. What is the each share?

[00:07:57]Again, 10 rupees. So, same. 2 lakh 250,000 divided by 10. So, 25,000. So, two times we are having the share capital. So, 250,000 divided 250,000 divided by 10. So, what is the share capital?

[00:08:17]Total 50,000.

[00:08:20]So, 50,000 shares. Okay? Each share how much they are saying? 10 rupees. So, 50,000 into 10 you need to do it.

[00:08:30]50,000 into 10 if you are doing this you are getting 5 lakhs.

[00:08:37]Okay? Where you will write this 5 lakhs?

[00:08:40]Here in the share capital. Here we have done the working notes number one, no?

[00:08:45]Here we have done the working notes, no?

[00:08:48]In note number here I'm writing one.

[00:08:52]5 lakhs.

[00:08:54]Okay?

[00:08:55]Understanding? So, A limited shareholders number of shares and purchase consideration shares we have taken number of shares and we have multiplied with the 10. So, we got total share capital is 5 lakhs. Next to what you are having, ma'am? Reserves and surplus. So, how to do this reserves and surplus means simple thing. Here I'm doing working notes number two.

[00:09:22]For reserves I'm doing, no?

[00:09:24]Working notes is also important. So, simple thing. What is the reserve you are having? Opening reserve is 120,000.

[00:09:33]B limited reserve is 29,000.

[00:09:36]So, general reserve what we need to do?

[00:09:38]1 lakh 20,000 is the A limited. From that, B limited we need to do minus. So, 1 lakh 20,000 minus 29,000 if you are doing means you'll get 91,000 only. Okay? So, this is general reserve comes under the reserves. And again you're having development rebate reserve. Development rebate reserve will also have reserve only, no?

[00:10:05]So, development rebate reserve. So, what is this we need to do? A limited is 10,000. Plus we need to do. Okay, general reserve always we need to do minus.

[00:10:17]Because it is decreased value. So, general rebate is development rebate is plus. So, 10,000 plus 37,000 it will become 47,000.

[00:10:29]Okay? Next you what you're having?

[00:10:32]Workmen compensation fund. Fund is also same thing.

[00:10:36]So, workmen compensation fund. Simple.

[00:10:40]15,000 is A plus 24,000 is B.

[00:10:46]So, 15,000 plus 24,000 is 39,000.

[00:10:54]Okay? So, next profit and loss account. Profit and loss account will also comes here in the reserves only. So, next what you're having? Profit and loss account. When you're taking profit and loss account, we need to take only 10,000. Why only 10,000? Why not B one means we are doing only balance sheet for A limited. So, that's why we need to do only the profit and loss account of A limited. What is that? 10,000.

[00:11:23]So, that's it. Okay? Now, do all the things.

[00:11:26]So, 39,000 plus 10,000 plus 47,000 plus 91,000.

[00:11:33]How much you're getting? 1 lakh 87,000 This is the total amount. So, you need to write it here in the reserves working notes number two.

[00:11:43]1 lakh 87,000 1,87,000 Clear? Next step.

[00:11:48]Next what you're having? Current liabilities, no? What is the current liabilities you are having? 45,000 and 95,000. Yes? So, how you will do this?

[00:11:58]Working notes number three.

[00:12:00]You are doing for the current liabilities. That means how much is the amount you are having, ma?

[00:12:07]45,000 plus 95,000 So, 45,000 plus 95,000 simply we need to add it. So, 45,000 plus 95,000 is 1 lakh 40,000.

[00:12:20]So, where you will write here in the current liabilities working notes number three.

[00:12:25]So, 1 lakh 40,000 40,000 Clear?

[00:12:30]After doing this, now nothing is left over. Share capital is over, equity shares is over, general reserve, P&L account, rebate, workmen compensation fund, current liabilities. Everything is over in the liabilities side. Just do the total. 5 lakhs plus 1 lakh 87,000 plus 1 lakh 40,000.

[00:12:50]How much it will be? 8 lakhs 27,000 you will get.

[00:12:57]So, 5 lakhs plus 1 lakh 87,000 plus 1 lakh 40,000 8 lakhs 27,000 is the answer of current of total liabilities. Now, same here in the assets side also.

[00:13:14]Simply fixed assets you need to take it aside. What is the fixed asset? Land and buildings, plant and machinery, furniture and fittings. These three are the fixed assets, no? So, fixed assets I'm doing the calculation working notes number four.

[00:13:28]So, here I'm doing the fixed assets. So, fixed assets calculation. What is the fixed assets we are having? Land, plant, furniture.

[00:13:38]So, land, plant, furniture. These all three are the fixed assets, no? What is the opening and closing? Land is 120 and 80. So, 120,000 plus 80,000.

[00:13:54]Plant is 2 lakhs.

[00:13:59]Plus 180,000.

[00:14:02]Next, furniture is 10,000 plus 20,000.

[00:14:10]This will become 2 lakhs.

[00:14:13]This will become 380,000.

[00:14:15]This will become 30,000.

[00:14:17]So, what is the total fixed assets? So, 2 lakhs plus 380,000 plus 30,000. So, 610,000 is the total fixed assets.

[00:14:29]So, directly here I'm writing 610,000.

[00:14:34]Clear?

[00:14:35]Understood? Next, what you are having?

[00:14:37]Inventories. Inventories is nothing about the stock. What is the stock we are having? 55,000 plus 40,000. So, here I'm doing the working notes number five for stock or inventories. How much you are having? 55,000 plus 40,000.

[00:14:58]So, how much it will be? 95,000.

[00:15:01]Okay? Here I'm doing working notes number five, no? So, 95,000.

[00:15:06]Next, trade receivable. Trade receivable is nothing about debtors. What you are having? 45,000 plus 40,000. This is working notes number six.

[00:15:17]So, trade receivables I'm doing. What is the amount you are having? 45,000 plus 40,000.

[00:15:25]So, how much it will be? 85,000.

[00:15:28]So, this is working notes number six, 85,000.

[00:15:32]Next, last one you are having bank, that is cash or cash equivalents. So, 20,000 plus 17,000. This is working notes number seven, cash and cash equivalents I am doing. So, what is the amount?

[00:15:44]20,000 plus 17,000.

[00:15:49]It will be 37,000.

[00:15:51]So, where you will write this? This is working notes number seven, 37,000.

[00:15:56]So, you need to merge everything and you need to show it like this. So, when you are adding all these 610,000 plus 95,000 Sorry, 6 lakhs 10,000 plus 95,000 plus 85,000 plus 37,000. How much it will be? 8 lakhs 27,000.

[00:16:17]Like this, it should get tallied. Simple thing you need to remember, they will give two companies, you need to merge the two companies amounts. Under which it will come? In assets, whether it is a fixed asset or whether it is a current asset, sign current asset, what it will come? In liabilities, it is a share capital or reserves or current liabilities or non-current liabilities or like this, you need to add it, you need to segregate the items where it will come. That's it. So, like this, you need to do the amalgamation in the nature of merger here. A is merging with the B company, no? So, working notes is important, pro forma is important, note number is important. Whatever you have done the working notes, you need to show it in the note number. After completing all the solution like this, your answer should get tallied. Okay, this is the first question I have done for better understanding.

[00:17:11]Clear?

[00:17:12]Understood? Okay, next we will do the another question.

[00:17:16]Now, see the next question, ma'am. This is the second question we are discussing in the nature of merger for better understanding.

[00:17:24]So see here, the following figures related to the Hero Limited and Honda Limited. There are two different companies, ma'am. So on 31st March 2018 who are agreed to amalgamate in Hero Honda company. Means two companies are merging together and forming a Hero Honda Limited. Okay, they have given the liabilities, they have given the assets.

[00:17:46]Assuming that goodwill of Hero Limited and Honda Limited is 56,000 and 55,800.

[00:17:54]So work out the amalgamation should be there and we are having that the investments also 54,000 and 38,000. Pass necessary journal entries and along with the show the initial balance sheet. So here they are amalgamating. Amalgamating is nothing about Hero company is like merging with Honda company and forming a Hero Honda Limited. Okay, so how to do this kind of solution? This is also in the nature of merger only, okay?

[00:18:25]So simple thing, first what we will write? We will write the balance sheet of Hero Honda Limited, no? So first what you will have? Equity and liabilities, yes? So here I'm writing equity and liabilities.

[00:18:41]In equity and liabilities, what is the first one you're having?

[00:18:45]Share capital.

[00:18:49]Second one what you will have, ma'am?

[00:18:51]Reserves and surplus.

[00:18:56]Okay.

[00:18:59]First what you're having is share capital and reserves and surplus, no?

[00:19:03]To do this share capital, what we need to do? Directly we should not take capital. We need We should not add like this. So to do this share capital, we need to calculate the purchase consideration. So, how to do this calculation of purchase consideration means see here. So, here I'm writing calculation of purchase consideration.

[00:19:25]Okay, this is a working note. Compulsory you need to do it in the examination also. So, how to do this purchase consideration means how many accounts you're having? Hero Limited you are having. Okay.

[00:19:40]Honda Limited you are having.

[00:19:42]For both you need to do the purchase consideration. Okay. So, what is the formula of purchase consideration? Total assets minus liabilities.

[00:19:52]So, first we will take the assets part.

[00:19:55]What is the assets we are having in the question?

[00:19:58]Fixed assets we are having 555,200.

[00:20:01]Honda committed Honda Limited company fixed assets you're having 297,800.

[00:20:07]So, here I'm writing fixed assets.

[00:20:11]555,200 297,800.

[00:20:17]Okay.

[00:20:19]Actually, sorry for the background disturbance.

[00:20:21]Try to understand the concept. So, to do this purchase consideration, we need to do the total assets minus current liabilities. So, fixed assets we are having 555,200 for Hero Limited. Honda Limited is 297,800.

[00:20:36]Yes. Next, stock is also we are having.

[00:20:39]So, here I'm getting stock.

[00:20:42]312,200 214,200.

[00:20:48]Next, book debts. Okay, next what you are having? Book debts. So, that is also we are having. So, book debts is also an asset. So, 247,800 and 170,400.

[00:21:05]Next, investments 60 and 40. But see here in the adjustment part, the investment of Hero Limited and Honda Limited are valued. So, when they are giving the assets in the table and assets in the adjustment part, you need to take the amount in the adjustment part only. So, investment, you should not take the table value. You should take this value because this is revalued. So, 54,000 and 38,000 we are taking. Okay. Next, what you are having, ma'am? Cash is also an asset. So, what is this? 36,800, 19,600.

[00:21:41]Next, what you're having? Goodwill is also asset, but they have given in the adjustment part. Even though if they are giving in the adjustment part, we need to consider it as an asset only. So, goodwill is also an asset, no? So, goodwill, how what is the goodwill amount we are having? 56,000 for the Hero Limited, 55,800 is the Honda Limited. Like this, we need to do all the assets. So, do the total assets, no?

[00:22:07]So, if you are adding all these results, means 555,200 + 312,200 + 247,000 uh uh 1 minute.

[00:22:19]555,200, 312,200, 247,800 + 54,000 + 36,800 + 56,000. If you are doing this, you are getting 12,622,000 of Hero Limited total assets. Same like that, Honda Limited also, 2,297,800 + 2,142,200 + 1,170,400 + 38,000 + 19,600 + 55,800.

[00:22:56]If you are doing this, what you are getting? 7,955,800.

[00:23:01]800.

[00:23:02]this, we need to deduct the liabilities.

[00:23:05]So, here I'm doing minus liabilities.

[00:23:11]So, what is the liabilities we are having, ma'am? Capital you should not take it. Profit and loss account you should not take it. Any reserves also you should not take it. Only you need to take the current liabilities. Like for example, creditors, bills payable, bank overdraft, this kind of stuff if you are having in the liability side you need to take it. So, we are having only creditors, no? So, we need to deduct this creditors. So, what is the creditors of uh Hero and Honda Limited, ma'am? So, 152,000 is for the Hero Limited. 202,000 is for the Honda Limited. What we need to do?

[00:23:44]We need to deduct this.

[00:23:46]Then you'll get the purchase consideration. That means 795,800 - 202,000. If you are doing means 593,800 is the answer. Same here also. 126,200 Sorry. 1,262,000 152,000 if you are doing means you are getting 1 lakh Sorry. 11 lakhs 10,000 you'll get. So, like this you need to calculate the purchase consideration of the companies. So, this purchase consideration whatever we got for Hero Limited and Honda Limited, that we will write it here in the share capital. How you will write it, ma'am? Simply add this both.

[00:24:30]That means 1,110,000 plus 593,800.

[00:24:36]If you are adding this two means how much you are getting? 1,703,800.

[00:24:43]So, here I'm writing 1,703,800.

[00:24:48]In every question, okay? In every question, if the question is like this in the nature of merger means whatever the purchase consideration we got for the both the companies, no? That purchase consideration we need to write it in the share capital, okay? So, like this you need to do the adjustment part.

[00:25:06]Clear? Understood? So, simple, easy, and it will be very easy to understand, also. Clear?

[00:25:14]Next up.

[00:25:15]Reserves and surplus we are not having any reserves here, only profit and loss account we are having, but profit and loss account we will not take it here in the reserve part. So, if they are having general reserve, then we will take it, but when we are both the companies is merging, no? That time we will not take any reserves and surplus. So, second part in liabilities what you are having?

[00:25:35]Current liabilities, no? So, what is the current liabilities you are having, ma?

[00:25:39]Only creditors you are having, no? So, here I'm writing creditors. So, what is the creditors you are having? 1 lakh 52,000 plus 2 lakh 2,000. So, 1 lakh 52,000 plus 2 lakh 2,000. If you are adding together, 1 lakh 52,000 plus 2 lakh 2,000, means you are getting 3 lakh 54,000 you are getting. So, this is the only liabilities part you are having. Capital already we have taken.

[00:26:07]Profit and loss if we should not take it. Creditors we have taken. Only these three parts you are having. Just do the total of total liabilities. So, total liabilities you will get like around plus 17 lakhs 3,800 if you are doing, means 20 lakhs 57,800 is the final answer.

[00:26:27]Okay? Same way, second part what you will have, ma? Assets. In assets, what you will have in assets? First you will have non-current assets. So, non- current assets. Same like previous one, only. In non-current assets what you will have?

[00:26:43]Fixed assets. First you will have the fixed assets. So, here directly they have given the fixed assets. That means 5 lakh 55,200 plus 2 lakh This both we need to add it. 555,200 plus 297,800 if you are adding means you'll get 853,000 you'll get it. Okay, this is called fixed asset. So, second one, intangible asset. Intangible asset what you will have? Goodwill you will have, no? So, what is the goodwill they have given, ma'am? So, goodwill they have given 56,000 and 55,800. That also you need to add it. So, 56,000 plus 55,800.

[00:27:29]So, 56,000 plus 55,800 if you are doing means you are getting the value of 111,800.

[00:27:37]Okay, this is goodwill part. Goodwill is also over. Next what is left over?

[00:27:42]Stock. Stock will come here in the current assets, no? So, here I'm writing current assets, same like previous one only. Okay, everything will be same.

[00:27:50]Stock is nothing about the inventories.

[00:27:54]Okay? So, inventories you will call it as a stock, no? So, inventories here I'm writing stock. What is the stock value you are having? 312,200 plus 214,200.

[00:28:09]Simply I'm adding these two. Okay?

[00:28:12]So, 312,200 plus 214,200.

[00:28:17]How much it will be? 526,400.

[00:28:22]Okay?

[00:28:25]Next.

[00:28:29]Next what you are having? Book debts.

[00:28:32]Book debts is nothing about trade receivables. Trade receivables is also known as the debtors, no? So, trade debtors is also known as trade receivables. So, that will be considered as 247,800 plus 170,400.

[00:28:48]Yes?

[00:28:53]247,800 plus 170,400.

[00:28:59]So, it will be 418,200.

[00:29:02]Like this, okay?

[00:29:04]Next, what you're having? Investments you're having. So, investments, how much you're having? 60,000 plus 40,000. So, total it will be 1 lakh.

[00:29:16]Next, cash and cash equivalent. So, cash and cash equivalent you're having 36,800 plus 19,600.

[00:29:24]So, say 36,800 and 19,600 it will be 56,400.

[00:29:31]But, the thing is investment they have given the below value, no? Revalued value they have given. That only we need to take it. Like 54 and 38. Instead of 60 and 40, we need to take 54 and 38. So, even they are giving the adjustment part, no? You need to consider that only. That means 54,000 plus 38,000. Like this you need to take it. If other in the adjustment part if they have not given, no? Directly table value only we will take it. But, adjustment they have given, no?

[00:30:00]So, that means 54,000 plus 38,000 you need to take it. How much it will be? 92,000. Now, everything is done. Just do the total of assets. It should get tallied, okay? That means 8,53,000 plus 1,11,800 plus 5,26,400 plus 4,18,200 plus 56,400 plus 92,000.

[00:30:29]How much it is there?

[00:30:31]20,57,800.

[00:30:35]So, total assets is 20,57,800 and total liabilities is also 20 lakhs, 57,800.

[00:30:43]Simply we have combined both the values like Hero Limited and Honda Limited we have combined it. And that's is the only thing we have done here. In share capital we have calculated purchase consideration.

[00:30:56]Okay, that is the only thing we have done all that. So like this you need to do the merger question. Clear? I hope you have understood. If you are not understanding no, again you rewatch the explanation you will easily understand what I am explaining.

[00:31:10]Okay? So like this you need to do the solution. Next question also I'll explain now. See here, directly they have given neatly they have given here.

[00:31:21]So what is they have given? Share capital they have given, reserve fund they have given, profit and loss account they have given, and creditors and bills payable they have given. Okay, they have given assets also fixed assets and current assets they have given. Simply we need to do the passing the we need to do the CS company. C is another company, S is another company, both are amalgamating that is both are merging together. We need to show the balance sheet. How you will show the balance sheet? Simple.

[00:31:48]Simply we need to add where it will come. What is the first thing you will have now? Equity and liabilities no? So equity and liabilities.

[00:31:59]Sorry, sorry, sorry.

[00:32:10]In equity and liabilities first you will have shareholders fund.

[00:32:16]Okay?

[00:32:17]In shareholders fund again you will have share capital.

[00:32:23]What you will do with the share capital?

[00:32:24]Simply we need to add it. So that means 50,000 5 lakhs and 3 lakhs. So total it will be 5 + 3 is 8 lakhs. So 5 lakhs + 3 lakhs is 8 lakhs. Simply we need to do it.

[00:32:39]Okay?

[00:32:42]Next, the reserve fund also.

[00:32:47]Reserve, what you'll do? 2 lakhs plus 2 lakh 50,000. Total it will be 4 lakh 50,000.

[00:32:55]Next, profit and loss account will also comes here, no? So, here I'm writing profit and loss account. So, directly we I'm writing here. So, it is 90,000. Okay?

[00:33:05]Next, creditors and bills payable comes here in the current liabilities. So, here I'm writing current liabilities.

[00:33:14]Okay? How you'll do this current liabilities? You are having creditors and bills payable.

[00:33:21]So, 2 lakh 25,000 plus 1 lakh 55,000.

[00:33:29]So, see here 2 lakh 25,000 plus 1 lakh 55,000. If you are doing this, you are getting 3 lakh 80,000. That's it. Now, do the total.

[00:33:40]So, 3 lakh 80 plus 90,000 plus 4 lakh 50,000 plus 8 lakhs. So, 17 lakhs 20,000 is the total liabilities.

[00:33:56]Okay?

[00:33:57]Now, in the asset side, second one what you're having, ma? Assets.

[00:34:03]In assets what you'll have? Non-current assets. First you'll have non-current assets. In non-current assets, what you'll have first one?

[00:34:12]Fixed assets. So, what is a fixed assets here? Goodwill is an intangible asset.

[00:34:17]Land and patents is a fixed assets. So, land and patents. Here I'm doing the working notes, ma, for fixed assets for better understanding. So, see here the working notes.

[00:34:28]What is the land we are having? 6 lakh 70,000 plus 5 lakh 20,000. Okay. Next, patents you are having 160,000 plus 105,000.

[00:34:41]Okay. So, what will be the total?

[00:34:43]670,000 Sorry.

[00:34:47]Plus 520,000, it will be 11,90,000.

[00:34:52]Next, 160,000 plus 105,000.

[00:34:57]It will be 265,000.

[00:35:00]So, 265,000 plus 11,90,000 is 14,55,000.

[00:35:07]So, total fixed assets is 14,55,000.

[00:35:12]So, here I'm writing working notes number one, 14,55,000.

[00:35:17]Okay, you can do working notes for this also, not an issue. Next, you are having intangible asset. No, intangible is nothing about goodwill.

[00:35:25]Here I'm writing goodwill.

[00:35:27]Okay, simply we need to add the goodwill. So, 1 lakh plus 80,000. So, totally it will be 1 lakh 80,000.

[00:35:35]Next, you are having current assets.

[00:35:40]Current assets, what you are having, ma'am? Bills receivable. Bills receivable will comes here in the trade receivable, no?

[00:35:48]So, trade receivable. So, 20,000 plus 15,000. So, it will be 35,000.

[00:35:55]Next, you are having cash and cash equivalents. That means bank. 25 plus 25, it will be 50,000. So, like this you need to add where it will come. You need to merge that both the values. Now, do the total. 14,55,000 plus 1,80,000 plus 50,000 plus 35,000.

[00:36:15]Like this you need to do it. So, how much you are getting? 17,20,000.

[00:36:20]That's it.

[00:36:21]Okay. So, this is the way you need to do the solution. So, both are tallied. Okay, Simply, where we need to get where we will enter all the things that you need to do it. That's it. Okay? Now, here I have given the homework sum here. So, this both the questions you do it as a homework and let me know your final answers in the comment section. This is the first question and take a screenshot. This is the second question.

[00:36:48]This two questions you need to do the homework. So, as of now, we have discussed the first part that is in the nature of merger we have discussed.

[00:36:58]Amalgamation in the nature of merger we have completely we have discussed.

[00:37:02]Clear? So, let me know in the comment section whether the explanation is understanding or not. You're having any difficulty in understanding, let me know in the comment section. So, better to prepare problematic from this unit rather than theory. Amalgamation in the merger and purchase compulsory one problematic every year they're asking.

[00:37:20]Sometimes both the problematic only they're asking. So, that's why problematic is non-negotiable. You should not skip that. Clear? All the very best. See you all in the next video. This notes PDF is available in our Telegram group for free of cost. All the links I have mentioned in the description box. See you all in the next video for the topic number two, ma.

[00:37:38]After watching this, please watch topic number two also. If you're watching two topics only, then you will complete unit number two problematic. Clear? So, that's it about the video. See you all in the next video, students. Bye-bye, everyone.