Model: Preference share capital in subsidiary company The following are the balance sheets of A Ltd. and B Ltd. as on 31 March 2011:
|
Liabilities |
A Ltd. |
B Ltd. |
Assets |
A Ltd. |
B Ltd. |
|
Share Capital: |
Fixed Assets |
15,00,000 |
7,20,000 |
||
|
Equity Shares of ,T. 100 |
12,00,000 |
4,50,000 |
Investment in 4,500 quity |
6,00,000 |
— |
|
Each Fully Paid |
Shares in B Ltd. on 1 April |
||||
|
2010 |
|||||
|
13% Preference Shares of |
— |
3,00,000 |
Current Assets (Including |
9,00,000 |
7,80,000 |
|
Rs.100 Each Fully Paid |
Rs.30,000 Stock-in-Trade |
||||
|
Purchased from A Ltd.) |
|||||
|
General Reserve |
1,50,000 |
1,20,000 |
|||
|
P&L A/c (Before |
90,0000 |
75,000 |
|||
|
Appropriation for |
|||||
|
Dividends) |
|||||
|
9% Debentures |
6,00,000 |
— |
|||
|
Current Liabilities and |
9,60,000 |
5,55,000 |
|||
|
Provisions |
|||||
|
30,00,000 |
15,00,000 |
30,00,000 |
15,00,000 |
Prepare the consolidated balance sheet as at 31 March 2011 assuming that:
- B Ltd.’s general reserve and P&L A/c (after appropriation for dividends) stood at Rs.75,000 and Rs.30,000, respectively, on 31 March 2010
- A Ltd. sells goods at a profit of 25% on cost