ACCOUNTING ENTRIES IN THE BOOKS OF TRANSFEREE COMPANY

ACCOUNTING ENTRIES IN THE BOOKS OF TRANSFEREE COMPANY :

A. In case the Amalgamation is in the nature of Merger: (Pooling of Interest Method)

1. On amalgamation of the business:
Business Purchase Account Dr. (with the amount of consideration)
To Liquidator of Transferor Company

2. When assets, liabilities and reserves are taken over from the transferor company and incorporated in the books:
Sundry Assets (Individually) Dr. (with the book value)
To Sundry Liabilities (Individually) (with the book value)
To Profit and Loss A/c (with the book balance)
To Reserves (with the book balance)
To Business Purchase A/c (with the consideration)

Amalgamation in the nature of merger, all the assets, written off expenses, debit balance of Profit and Loss Account, outside liabilities and reserves of the transferor company have to be recorded in the books of the transferee company in the form and at the book values as they were appearing in the books of the transferor company on the date of amalgamation. However, if there is a conflict in the accounting policies of the transferee and transferor companies, changes in the book values may be made to ensure uniformity.

While passing the above journal entry, the difference between the amount of consideration payable by the transferee company to the transferor company and the amount of the share capital of the transferor company is adjusted in the general reserve or other reserves.

3. When consideration is satisfied:
Liquidator of Transferor Company Dr. (with the purchase consideration)
To Equity Share Capital (with the paid-up value of
To Preference Share Capital shares allotted)
To Bank (with cash paid)

The shares may be allotted at premium or at discount, in which case share premium account and discount on issue of shares account should be stated. In the case of mergers the consideration receivable by those equity shareholders of the transferor company who agree to become equity shareholders of the transferee company is discharged by the transferee company wholly by issue of equity shares in the transferee company, except that cash may be paid in respect of any fractional shares. However, the transferee company may issue preference shares to the preference shareholders of the transferor company. Moreover, the transferee company may allot securities other than equity shares and give cash and other assets to satisfy the dissenting shareholders of the transferor company.

4. On discharge of liability, say, the debentures of the transferor company by the transferee company directly, say, by allotment of its own debentures, the journal entry will be:

Debentures in Transferor Company Dr. (with the paid-up value of
To Debentures debentures allotted)

5. If the liquidation expenses of the transferor company are borne by the transferee company it may be adjusted in the General Reserve:

General Reserve A/c Dr. (with the amount of expenses)
To Bank

6. For the formation expenses of the transferee company:

Preliminary Expenses Account Dr. (with the amount of expenditure)
To Bank

B. In case the Amalgamation is in the nature of Purchase:

1. On acquisition of the business from the transferor company:

Business Purchase A/c Dr. (with the amount of consideration)
To Liquidator of Transferor Company

2. When the assets and liabilities are taken over from transferor company:

Sundry Assets A/c (Individually excluding goodwill) Dr. (with their revalued figures, if any, otherwise at their book figures)

To Sundry Liabilities A/c (Individually) (with the figures at which
they are taken over)

To Business Purchase A/c (with the amount of consideration)

Notes:

(a) If the debit total is greater than the credit total, the difference has to be treated as capital profit and as such the same should be credited to Capital Reserve Account.

(b) Similarly, if the credit total is greater than the debit total, the difference should be debited to Goodwill Account.

3. When the consideration is satisfied:

Liquidator of Transferor Company Dr. (with the amount of consideration)
To Preference Share Capital A/c
To Equity Share Capital A/c (with the face value of shares allotted)
To Debentures A/c (with the face value of debentures allotted)
To Bank (with the amount paid)

The shares or debentures may be allotted at a premium or at a discount.

4. Normally when an amalgamation is in the nature of purchase, the identity of the reserves of the transferor company is not maintained. However, in order to get the advantage of provision of some statute, it is necessary to retain the identity of statutory reserves of the transferor company in the books of the transferee company. In order to record the statutory reserves of the transferor company in the books of the transferee company, the
following entry will be passed:

Amalgamation Adjustment A/c Dr. (with the amount of statutory reserve)
To Statutory Reserve A/c

It may be noted that latter, when the identity of statutory reserves of transferor company is no longer required to be maintained, the above mentioned entry will be reversed.

5. If the liquidation expenses of the transferor company are borne by the transferee company, the same is to be
debited to Goodwill Account and the following entry is to be passed:

Goodwill Account Dr. (with the amount of expenditure)
To Bank

6. With the formation expenses of the transferee company, if any:

Preliminary Expenses A/c Dr. (with the amount of expenditure)
To Bank

7. If there are both goodwill and capital reserve, Goodwill may be written off against Capital Reserve:

Capital Reserve A/c Dr. (with the amount written off)

To Goodwill A/c
Note: Either Goodwill Account or Capital Reserve Account whichever is greater will appear in the balance sheet.

8. If any liability is discharged by the transferee company:

Respective Liability A/c Dr. (with the amount payable)
To Share Capital A/c
To Debentures A/c (as the case may be)
To Bank

9. If fresh issue of shares or debentures is made to raise further capital:

(a) Bank Dr. (with the money received
To Share Application and Allotment A/c on application)
To Debenture Application and Allotment A/c

(b) Share Application and Allotment A/c Dr. (with the money received on

Debenture Application and Allotment A/c Dr. shares or debentures allotted)
To Share Capital A/c
To Debentures A/c

Illustration :

(Amalgamation in the nature of merger)
The following are the Balance Sheet of A Co. Ltd. and B Co. Ltd. as on 30th September, 2013

A Co. Ltd.

Particulars	Amount (Rs)	Amount (Rs)
I EQUITIES AND LIABILITIES
1 Shareholders’ funds
(a) Share Capital
Authorised, Issued subscribed and paid up capital
50,000 Equity shares of ` 10 each, fully called up and paid up		5,00,000
(b) Reserve and surplus
General reserve		1,70,000
Profit and Loss account		30,000
2 Non-current liabilities
12% Debentures		1,00,000
Employee provident fund		15,000
3 Current Liabilities
Trade Payables		50,000
TOTAL		8,65,000
II ASSETS
1 Non-current Assets
(a) Fixed Assets
Tangible Assets
Building	1,50,000
Machinery	5,50,000	7,00,000
2 Current Assets
Stock	80,000
Trade receivables	70,000
Cash	15,000	1,65,000
TOTAL		8,65,000

B Co. Ltd.

Particulars	Amount (Rs)	Amount (Rs)
I EQUITIES AND LIABILITIES
1 Shareholders’ funds
(a) Share Capital
Authorised, Issued subscribed and paid up capital
30,000 Equity shares of ` 10 each, fully called up and paid up		3,00,000
2 Current Liabilities
Trade Payables		40,000
TOTAL		3,40,000
II ASSETS
1 Non-current Assets
(a) Fixed Assets
Tangible Assets
Machinery		2,50,000
2 Current Assets
Stock	40,000
Trade receivables 50,000
Less: Provision for doubtful debts 5,000	45,000
Cash and cash equivalents	5,000	90,000
TOTAL		3,40,000

The two companies agree to amalgamate and form a new company called C Co. Ltd. which takes over all the assets and liabilities of both the companies on 1st October, 2013.

The purchase consideration is agreed at ` 6,61,500 and ` 3,15,000 for A Co. Ltd. and B Co. Ltd. respectively. The entire purchase price is to be paid by C Co. Ltd. in fully paid equity shares of ` 10 each. The debentures of A Co. Ltd. will be converted into equivalent number of debentures of C Co. Ltd.

Give journal entries to close the books of A Co. Ltd. and B Co. Ltd. and show the opening entries in the books of C Co. Ltd. Also prepare the opening Balance Sheet in the books of C Co. Ltd. as on 1st October, 2013. The authorised capital of C Co. Ltd. is 2,00,000 equity shares of ` 10 each.

Solution:

Journal Entries in the Books of A Co. Ltd.

Date

Particulars

Amount (Rs.)

2013, Oct 1	Realisation A/c Dr.	8,65,000
	To Buildings A/c		1,50,000
	To Machinery A/c		5,50,000
	To Stock A/c		80,000
	To Trade receivables A/c		70,000
	To Cash A/c		15,000
	(Being the transfer of sundry assets at their book values)

	12% Debentures A/c Dr.	1,00,000
	Trade Payables A/c Dr.	50,000
	Employees’ Provident Fund A/c Dr.	15,000
	To Realisation A/c		1,65,000
	(Being the transfer of sundry liabilities at their book-figures)

	C Co. Ltd. Dr.	6,61,500
	To Realisation A/c		6,61,500
	(Being the consideration due as per agreement dated…..)

	Equity Shareholders A/c Dr.	38,500
	To Realisation A/c		38,500
	(Being transfer of loss on realisation)

	Equity Shares in C Co. Ltd. Dr.	6,61,500
	To C Co. Ltd.		6,61,500
	(Being the receipt of consideration)

	Equity Share Capital A/c Dr.	5,00,000
	General Reserve A/c Dr.	1,70,000
	Profit and Loss A/c Dr.	30,000
	To Equity Shareholders A/c		7,00,000
	(Being the transfer of share capital and past accumulated profits and reserves)

	Equity Shareholders A/c Dr.	6,61,500
	To Equity Shares in C Co. Ltd.		6,61,500
	(Being the final payment to equity shareholders)

Journal of B Co. Ltd.

Date	Particulars	Amount (Rs.)	Amount (Rs.)
2013 Oct 1	Realisation A/c Dr.	3,45,000
	To Machinery A/c		2,50,000
	To Stock A/c		40,000
	To Trade receivables A/c		50,000
	To Cash A/c		5,000
	(Being the transfer of sundry assets at their book-values)

	Provision for Doubtful Debts A/c Dr.	5,000
	Trade Payables A/c Dr.	40,000
	To Realisation A/c		45,000
	(Being the transfer of sundry liabilities at their book-figures)

	C Co. Ltd. Dr. To Realisation A/c (Being the consideration due as per agreement dated…..)	3,15,000	3,15,000

	Realisation A/c Dr.	15,000
	To Equity Shareholders A/c		15000
	(Being the transfer of profit on realisation)

	Equity Shares in C Co. Ltd. Dr.	3,15,000
	To C Co. Ltd.		3,15,000
	(Being the receipt of consideration)

	Equity Share Capital A/c Dr.	3,00,000
	To Equity Shareholders A/c		3,00,000
	(Being the transfer of share capital)

	Equity Shareholders A/c Dr.	3,15,000
	To Equity Shares in C Co. Ltd.		3,15,000
	(Being the final payment to equity shareholders)

Journal of C Co. Ltd.

Business Purchase A/c Dr.	9,76,500
To Liquidator of A Co. Ltd.		6,61,500
To Liquidator of B Co. Ltd.		3,15,000
(Being the amalgamation of business of A Co. Ltd. and B Co. Ltd. as per agreement dated…..)

Buildings A/c Dr.	1,50,000
Machinery A/c Dr.	5,50,000
Stock A/c Dr.	80,000
Trade receivables A/c Dr.	70,000
Cash A/c Dr.	15,000
General Reserve A/c Dr.	1,61,500
To General Reserve		1,70,000
To Profit and Loss A/c		30,000
To 12% Debentures in A Co. Ltd.		1,00,000
To Trade Payables A/c		50,000
To Employees Provident Fund		15,000
To Business Purchase A/c		6,61,500
(Being the assets, liabilities, general reserve and profit and loss account of A Ltd. transferred and the difference between consideration and share capital debited general reserve account)

Machinery A/c Dr.	2,50,000
Stock A/c Dr.	40,000
Trade receivables A/c Dr.	50,000
Cash A/c Dr.	5,000
General Reserve A/c Dr.	15,000
To Trade Payables A/c		40,000
To Provision for Doubtful Debts A/c		5,000
To Business Purchase A/c		3,15,500
(Being the assets and liabilities of B Ltd. transferred and the difference between consideration and share capital debited to general reserve account)

Profit and Loss A/c Dr.	6,500
To General Reserve A/c		6,500
(The debit balance in general reserve account is transferred to the profit and loss account)

Note: The above three journal entries may be clubbed and one compound entry may be passed as under:

“ Buildings A/c Dr.	1,50,000
Machinery A/c Dr.	8,00,000
Stock A/c Dr.	1,20,000
Trade receivables A/c Dr.	1,20,000
Cash A/c Dr.	20,000
To Provision for Doubtful Debts		5,000
To 12% Debentures in A Co. Ltd.		1,00,000
To Trade Payables		90,000
To Employees Provident Fund		15,000
To Profit and Loss A/c [note]		23,500
To Business Purchase A/c		9,76,500
(Being the assets, liabilities, reserve and profit and loss account of A Ltd. and B Ltd. transferred and the difference between consideration and equity capital of transferor companies adjusted against the general reserve and profit and loss account)
Liquidator of A Co. Ltd. Dr.	6,61,500
Liquidator of B Co. Ltd. Dr.	3,15,000
To Equity Share Capital		9,76,500
(Being the allotment of 97,650 equity shares to transferor companies as fully paid up for consideration other than cash)

12% Debentures in A Co. Ltd. Dr.	1,00,000
To 12% Debentures A/c		1,00,000
(Being the debentures issued in place of 12% Debentures in A Ltd.)

Note: Profit and Loss Account balance is arrived as follows:

A Ltd. Rs.

B Ltd. Rs.

Amount of share capital	5,00,000	3,00,000
Less : Purchase consideration	6,61,500	3,15,000
	(1,61,500)	(-15,000)

This total difference of ` 1, 76,500 should be adjusted against the reserves and profit and loss account.

General Reserve 1,70,000	1,70,000	1,70,000	–
Profit and Loss Account	30,000	6,500	23,500
	2,00,000	1,76,500	23500

Balance Sheet of C Co. Ltd.
as on 1st October, 2013

Particular	Amount in (Rs.)	Amount in (`Rs)
I EQUITIES AND LIABILITIES
1 Shareholders’ funds
(a) Share Capital
Authorised Capital – 2,00,000 equity shares of ` 10 each		20,00,000
Issued subscribed and paid up capital
96,750 Equity shares of ` 10 each, issued to
transferors as fully paid-up for consideration other
than cash		9,76,500
(b) Reserve and surplus
Profit and Loss account		23,500
2 Non-current liabilities
12% Debentures of `100 each		1,00,000
Employee provident fund		15,000
3 Current Liabilities
Trade Payables		90,000
TOTAL		12,05,000
II ASSETS
1 Non-current Assets
(a) Fixed Assets
(i) Tangible Assets
Building	1,50,000
Plant & machinery	8,00,000	9,50,000
2 Current Assets
Stock	1,20,000
Trade recievables 1,20,000
Less: Provision for Doubtful Debt 5,000	1,15,000
Cash and Cash equivalents : Cash in hand	20,000	2,55,000
TOTAL		12,05,000

Illustration 🙁Amalgamation in the nature of merger)
Thin & Co. Ltd. was absorbed by Thick & Co. Ltd., as on 30th June, 2013. All the assets and liabilities of Thin & Co. Ltd. were taken over by Thick & Co. Ltd. The consideration was agreed at ` 3,36,600 and was paid in so many fully paid equity shares of Thick & Co. Ltd. to be distributed to the equity shareholders of Thin & Co. Ltd. The following are the balance sheets of both the companies as on 30.6.2013.

Balance Sheet
as on 30th June, 2013

Particular	Thick & Co Ltd.		Thin & Co Ltd.
I EQUITIES AND LIABILITIES
1 Shareholders’ funds
(a) Share Capital
Authorised, Issued subscribed and paid up capital
Equity shares of ` 10 each, fully
called up and paid up		7,50,000		2,00,000
(b) Reserve and surplus
General reserve	1,50,000		50,000
Profit and Loss account	_____20,502___	1,70,502	___12,900___	62,900
2 Non-current liabilities
Workman compensation fund	12,000		9,000
Employee provident fund	__10,000__	22,000	__4,000__	13,000
3 Current Liabilities
Trade Payables	58,567		30,456
Provision for taxation	__12,000__	__ 70,567__	__5,000__	__35,456__
TOTAL		10,13,069_		__3,11,356__
II ASSETS
1 Non-current Assets
(a) Fixed Assets
(i) Tangible Assets
Plant & machinery	3,12,000		1,00,000
(ii) Intangible Assets
Goodwill	__2,00,000__	5,12,000	____60,000___	1,60,000
2 Current Assets
Stock	2,65,000		80,000
Debtor	2,21,200		56,000
Cash and Cash equivalents : Cash in hand	869		356
: Cash at bank	____14,000____	5,01,069	____8,300___	1,44,656
Other current Assets
Prepaid Insurance				700
Income Tax Refund claim		———————————		___6,000___
TOTAL		10,13,069		3,11,356

You are required to:
(i) Show the necessary ledger accounts in the books of Thin & Co. Ltd.;
(ii) Show the necessary journal entries in the books of Thick & Co. Ltd.; and
(iii) Prepare the Balance Sheet of Thick & Co. after the amalgamation.

Solution:

Ledger of Thin & Co. Ltd.
Realisation Account

Dr. Cr.

Particulars	Amount (Rs.)	Particulars	Amount (Rs.)
To Goodwill	60,000	By Sundry Trade Payables	30,456
To Plant and Machinery	1,00,000	By Staff Provident Fund	4,000
To Stock-in-Trade	80,000	By Provision for Taxation	5,000
To Trade receivables	56,000	By Thick & Co. Ltd.	3,36,600
To Income-tax Refund Claim	56,000
To Prepaid Insurance	700
To Cash in Hand	356
To Cash at Bank	8,300
To Equity Shareholders (Profit)	_____64,700_____		_______________
	3,76,056		3,76,056

Thick & Co. Ltd.

Particulars	Amount (Rs.)	Particulars	Amount (Rs.)
To Realisation A/c	3,36,600	By Equity Shares in Thick & Co. Ltd.	3,36,600

Equity Shares in Thick & Co. Ltd.

Particulars	Amount (Rs.)	Particulars	Amount (Rs.)
To Thick & Co. Ltd.	3,36,600	By Equity Shareholders A/c	3,36,600

Equity Shareholders Account

Particulars	Amount (Rs.)	Particulars	Amount (Rs.)
To Equity Shares in Thick & Co. Ltd. A/c	3,36,600	By Equity Share Capital A/c	2,00,000
		By General Reserve A/c	50,000
		By Profit and Loss A/c	12,900
		By Workmen Compensation Fund	9,000
	______________	By Realisation A/c	___64,700__
	__3,36,600__		___3,36,600__

Journal Entries in the Books of Thick & Co. Ltd.

Particulars	Dr. (Rs.)	Cr.( Rs.`)
Business Purchase A/c Dr.	3,36,600
To Liquidator of Thin & Co. Ltd. (Being the amalgamation of business of Thin & Co. Ltd. as per agreement dated……		3,36,600.

Goodwill Dr.	60,000
Plant and Machinery Dr.	1,00,000
Stock in Trade Dr.	80,000
Trade receivables Dr.	56,000
Prepaid Insurance Dr.	700
Income tax Refund Claim Dr.	6,000
Cash in Hand Dr.	356
Cash at Bank Dr.	8,300
General Reserve Dr.	73,700
To Workman Compensation Fund		9,000
To Trade Payables		30,456
To Staff Providend Fund		4,000
To Provision for Taxation		5,000
To Business Purchase A/c		3,36,600
(Being the assets, liabilities and reserves of Thin Ltd. at book value transferred and the difference in consideration and equity share capital being adjusted against in the general reserve of Thin Ltd.)

Liquidator of Thin & Co. Ltd. Dr.	3,36,600
To Equity Share Capital		3,36,600
(Being the allotment of 33,360 equity shares of ` 10 each to the transferor company as consideration)

Illustration :

Under given is the balance sheet of Rajbhasha & Co as on 31st March, 2014 :

Particulars	Dr.(Rs.)	Cr.(Rs.)
I EQUITIES AND LIABILITIES
1 Shareholders’ funds
(a) Share Capital
Authorised, Issued subscribed and paid up capital
12,500 9% preference shares of ` 8 each	1,00,000
1,50,000 equity shares of ` 1 each	___1,50,000 __	2,50,000

(b) Reserve and surplus
Profit and Loss account		(98,000)
2 Non-current liabilities
10% debentures		60,000
3 Current Liabilities
Trade Payables	50,000
Bank overdraft ( Secured by Land and building)	20,000
Debentures interest	__4,200__	___74,200____
TOTAL		__2,86,200__
II ASSETS
1 Non-current Assets
(a) Fixed Assets
Freehold Land and building	34,000
Plant	96,000
Tools and dies	__27300__	1,57,300
(b) Other non-current expenses		18,000
Research and development expenses
2 Current Assets
Stock		42,500
Trade receivables		53,400
Investment		___15,000___
TOTAL		___2,86,200___

The scheme of re-organisation detailed below has been agreed by all the parties approved by the Court. You are required to prepare:

(a) Journal entries recording the transactions in the books, including cash;

(b) The balance sheet of the company as on 1st April, 2014 after the completion of the scheme.

(i) The following assets are to be revalued as shown below: plant Rs.59,000 tools and diesRs. 15,000; stockRs. 30,000 and debtors Rs.48,700.

(ii) The research and development expenditure and debit balance of profit and loss account are to be written off.

(iii) Price of land recorded in the books at ` 6,000 is valued at ` 14,000 and is to be taken over by the debenture holders in part repayment of principal. The remaining freehold land and buildings are to be revalued at Rs.40,000.

(iv) A creditor for Rs.18,000 has agreed to accept a second mortgage debenture of 11% per annum secured on plant for Rs.15,500 in settlement of his debt. Other creditors totaling ` 10,000 agreed to accept a payment of ` 0.85 in the rupee for immediate settlement.

(v) The investment at a valuation of ` 22,000 is to be taken over by the bank.

(vi) The ascertained loss is to be met by writing down the equity shares to ` 1 each and preference shares to ` 8 each. The authorised share capital is to be increased immediately to the original amount.

(vii) The equity shareholders agree to subscribe for two new ordinary shares at par for every share held. This cash is all received.

(viii) The costs of the scheme are ` 3,500. These have been paid and are to be written off. The debenture interest has also been paid.

Solution

Journal Entries in the books of Rajbhasha & Co

Particulars	Dr.(Rs.)	Cr.(Rs.)
1 Freehold Land and Building A/c Dr.	20,000
Investment A/c Dr.	7,000
To Reconstruction A/c		27,000
(Book value of assets raised to their revalued worth)

Trade Payables Dr.	28,000
To 11% Second Mortgage Debentures		15,500
To Bank		8,500
To Reconstruction A/c		4,000
(The discharge of part of the creditors)

10% Debentures A/c Dr.	14,000
To Debenture holders A/c		14,000
(Redemption of part of the debentures)

Debenture holders A/c Dr.	14,000
To Freehold Land and Building		14,000
(The discharge of amount due to debenture holders)

Equity Share Capital A/c (Rs.10) Dr.	1,50,000
Preference Share Capital A/c (Rs.10) Dr.	1,00,000
To Equity Share Capital A/c (Re. 1)		15,000
To Preference Share Capital A/c (` 8)		80,000
To Reconstruction A/c		1,55,000
(The writing down of equity and preference shares)

Bank Dr.	30,000
To Equity Share Capital A/c		30,000
(The subscription of 30,000 equity shares)

Bank Dr.	22,000
To Investments		22,000
(Investments taken over by bank)

Reconstruction A/c Dr.	3,500
Outstanding Interest on Debentures A/c Dr.	4,200
To Bank		7,700
(Payment of reorganisation expenses and outstanding interest)

Reconstruction A/c Dr.	1,82,500
To Plant		37,000
To Tool and Dies		12,300
To Stocks		12,500
To Provision for Bad Debts A/c		4,700
To Reserve and Development Expenditure A/c		18,000
To Profit and Loss A/c		98,000
(Writing down of various assets and elimination of fictitious assets)

Balance Sheet of Rajbhasha & Co.
as at 1st April, 2014

Particular	Amount(Rs.)	Amount (Rs.)
I EQUITIES AND LIABILITIES
1 Shareholders’ funds
(a) Share Capital
Authorised Capital
12,500 9% preference shares of ` 8 each	1,00,000
1,50,000 equity shares of ` 1 each	1,50,000	2,50,000
Issued subscribed and paid up capital
10,000 9% preference shares of ` 8 each	80,000
45,000 equity shares of ` 1 each	45,000	1,25,000
2 Non-current liabilities
10% 1st Mortgage debentures	46,000
11% 2nd mortgage debentures	15,500	61,500
3 Current Liabilities
Trade Payables		22,000
TOTAL		2,08,500
II ASSETS
1 Non-current Assets
(a) Fixed Assets
Freehold Land and building	28,000
Add: Amount of Appreciation made under scheme of reconstruction	12,000	40,000
Plant	96,000
Less: Amount written off under scheme of reconstruction	37,000	59,000
Tools and dies	27,300
Less: Amount written off under scheme of reconstruction	12,300	15,000
2 Current Assets
Stock 30,000		30,000
Trade receivables 53,400	53,400
Less: Provision for bad debts	4,700	48,700
Cash and Cash equivalents		15,800
TOTAL		2,08,500

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