show the journal entries to record the above in both companies and draw the balance 620742

The position of two companies L and R is as follows:

					(Rs. in 000″s)
Liabilities	L Ltd. Rs.	R Ltd.	Assets	L Ltd. Rs.	R Ltd. Rs.
Nominal Capital:			Fixed Assets	3,600	6,000
Shares of Rs.10 Each	6,000	12,000	Debtors & Stock	4,200	1,000
Issued and Paid up Capital:			Cash at Bank	—	1,200
Shares of !10 Each Fully	6,000	8,400	Goodwill	1,200	4,200
Called & Paid			Profit & Loss	1,800	—
5% Debentures	1,200	—
Creditors	3,600	2,400
Profit & Loss A/c	—	1,800
	I 0.800	12,600		10,800	12,600

R Ltd. agreed to absorb L Ltd. upon the following terms:

1. The shares in L Ltd. are to be considered as worth Rs.6 each. The shareholders of L Ltd. are to be paid one quarter in cash and the balance in shares of R Ltd. at Rs.12.50 each.
2. The debenture holders in L Ltd. agreed to take Rs.95 of 7% debentures in R Ltd. for every Rs.100 of 5% debentures held in L Ltd.
3. L Ltd. is to be wound up.

Show the journal entries to record the above in both companies and draw the balance sheet showing the position of R Ltd. after the absorption.