The balance sheets of Ashish Ltd. and Anand Ltd. as on 31 March 2011 are as follows:
|
Liabilities |
AshishLtd.Rs. |
Anand Ltd. Rs. |
|
Equity Share Capital: |
||
|
Fully Paid Shares of 10 Each |
1,20,000 |
30,000 |
|
General Reserve as on 1 April 2010 |
84,000 |
1,200 |
|
Profit and Loss Account |
51,000 |
21,600 |
|
Sundry Creditors |
21,000 |
10,5002,76,00063,300 |
|
2,76,000 |
63,300 |
|
Assets |
||
|
Buildings |
84,000 |
17,400 |
|
Plant & Machinery |
60,0000 |
15,600 |
|
Furniture & Fittings |
4,500 |
2,100 |
|
Investments |
60,000 |
— |
|
Stock |
60,000 |
— |
|
Sundry Debtors |
22,500 |
12,600 |
|
Cash at Bank |
24,000 |
9,600 |
|
21,000 |
6,000 |
|
|
2,76,000 |
63,300 |
Prepare a consolidated balance sheet after considering the following:
- Ashish Ltd. acquired 24 lakh equity shares of Anand Ltd. on 1 July 2010 at Rs.6 crore.
- Stock of Ashish Ltd. includes Rs.18 lakh relating to stock purchased from Anand Ltd. which sells goods at cost plus 25%.
- Sundry creditors of Ashish Ltd. includes Rs.30 lakh due to Anand Ltd.
- P&L A/c of Ashish Ltd. includes interim dividend received from Anand Ltd. on 1 August 2010.
- On 1 April 2010, balance of P&L A/c in Anand Ltd.’s ledger stood at Rs.1,71,30,000. Out of this balance, an interim dividend @ 10% was paid on 1 August 2010. Corporate dividend tax @ 11% was also paid on the amount of interim dividend.
Profits during the year 2010–11 have been earned by Anand Ltd. on a uniform basis throughout the year.