Model: Pre-acquisition profit/reserves From the following information, prepare a consolidated balance sheet.
Balance Sheets as on 31 December 2010
|
Liabilities |
H Ltd. |
S Ltd. |
Assets |
H Ltd. |
S Ltd. |
|
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.