Model: Bonus issue out of revenue profits (Post-acquisition profits) C Ltd. acquired 10,000 equity shares of Rs.10 each in D Ltd. on 31 March 2010. The summarized balance sheets of the two companies as on 31 March 2011 were as follows:

Particulars

C Ltd.
Rs.

D Ltd.
Rs.

Liabilities:

Equity Share Capital (Shares of Rs.10 Each)

4,00,000

1,25,000

Reserves

1,50,000

25,000

Profit and Loss Account

50,000

50,000

Creditors

1,00,000

25,000

7,00,000

2,25,000

Assets:

Fixed Assets

3,50,000

1,25,000

Current Assets

2,00,000

1,00,000

10,000 Shares in D Ltd. at Cost

1,50,000

7,00,000

2,25,000

D Ltd. had a credit balance of Rs.25,000 in the reserves and Rs.10,000 in the P&L A/c when C Ltd. acquired shares in D Ltd. D Ltd. issued bonus shares in the ratio of 1 share for every 5 shares held out of the profits earned during 2010–11. This is not shown in the above balance sheet of D Ltd. Prepare a consolidated balance sheet of C Ltd. and its subsidiary on 31 March 2011 giving all the necessary workings.