Model: Consolidated profit & loss A/c H Ltd. acquired 80% of the shares in S Ltd. on 1 January 2010. The following is the summarized P&L A/c of the companies after ascertaining net profit:
Profit & Loss Account of H Ltd. & S Ltd.
for the Year Ended 31 December 2010.
|
Particulars |
H Ltd. |
Particulars |
S Ltd. |
||
|
To Proposed Dividend |
– |
3,00,000 |
By Net Profit c/d |
12,00,000 |
5,40,000 |
|
To Balance c/d |
13,80,000 |
2,40,000 |
By Dividend Receivable from S Ltd. |
1,80,000 |
– |
|
13,80,000 |
5,40,000 |
13,80,000 |
5,40,000 |
You are required to prepare a consolidated P&L A/c for the two companies.