Model: Pre-acquisition loss The balance sheet of H Ltd. and its subsidiary S Ltd. as on 31 December 2010 were as follows:
|
Liabilities |
H Ltd. |
S Ltd. |
Assets |
H Ltd. |
S Ltd. |
|
Share Capital: |
Sundry Assets |
80,000 |
50,000 |
||
|
Shares of Z10 Each |
50,000 |
30,000 |
Investments: |
||
|
General Reserve |
20,000 |
— |
2,000 Shares in S Ltd. |
20,000 |
— |
|
Profit & Loss Account |
20,000 |
9,000 |
|||
|
Creditors |
10,000 |
11,000 |
|||
|
1,00,000 |
50,000 |
1,00,000 |
50,000 |
The shares were purchased by H Ltd. and S Ltd. in 30 June 2010. On 1 January 2010, the P&L A/c of S Ltd. showed a loss of Rs.15,000 which was written off from out of the profits earned during the year. Profits are earned uninformally over the year 2010. Prepare a consolidated balance sheet of H Ltd. and S Ltd. as on 31 December 2010 giving all workings.