ABC & Co. Ltd agrees to acquire the business of XYZ & Co. Ltd as on 31 December, 2003 and to take over the assets and liabilities at their balance sheet value, in exchange for which it is to issue 12...

ABC & Co. Ltd agrees to acquire the business of XYZ & Co. Ltd as on 31 December, 2003 and to take over the assets and liabilities at their balance sheet value, in exchange for which it is to issue 12 shares of Rs 10 each for every share of Rs 100 each in XYZ. The expenses of the acquisition, Rs 10,000 are to be borne by the acquiring firm. The balance sheets of the firms are as follows.