Model: Pre-acquisition profit/reserves From the following information, prepare a consolidated balance sheet.

Balance Sheets as on 31 December 2010

Liabilities

H Ltd.
Rs.

S Ltd.
Rs.

Assets

H Ltd.
Rs.

S Ltd.
Rs.

Share Capital

Shares of Z10 Each

2,00,000

1,00,000

Sundry Assets

2,20,000

1,50,000

Reserves

50,000

20,000

Investments

Profit & Loss A/c

20,000

10,000

6,000 Shares of S Ltd.

80,000

Creditors

30,000

20,000

3,00,000

1,50,000

3,00,000

150 000

H Ltd. acquired its shares in S Ltd. on 1 January 2010 when reserves of S Ltd. stood at Rs.4,000 and its profit and loss account (Cr.) was Rs.5,000.