This accounting problem is solved step by step below, with detailed explanations to help you understand the method and arrive at the correct answer.

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Here are the necessary ledger accounts for M/s R & Co. and the Balance Sheet of the new firm after amalgamation.
Step 1: Calculate Purchase Consideration for M/s R & Co. The purchase consideration is calculated based on the assets taken over and liabilities assumed by the new firm.
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Calculate Purchase Consideration for M/s R & Co. The purchase consideration is calculated based on the assets taken over and liabilities assumed by the new firm.
This accounting problem is solved step by step below, with detailed explanations to help you understand the method and arrive at the correct answer.