Model: Revaluation of assets The summarized balance sheets of H Ltd. and its subsidiary S Ltd. as at 31 December 2010 are as follows:
|
Liabilities |
H Ltd. Rs. |
Assets |
S Ltd. |
||
|
Equity Shares of Z 100 |
3,600 |
1,800 |
Goodwill at Cost |
750 |
225 |
|
Each |
|
|
|
|
|
|
Share Premium |
540 |
– |
Plant at Cost Less |
2.160 |
1,350 |
|
|
|
|
Depreciation |
|
|
|
Capital Reserve on 1 |
240 |
180 |
Fixtures at Cost Less |
390 |
171 |
|
January 2010 |
|
|
Depreciation |
|
|
|
General Reserve on 1 |
450 |
300 |
Stock at Cost |
540 |
360 |
|
January 2010 |
|
|
Debtors |
1,881 |
633 |
|
P&L A/c on 1 January |
1,200 |
240 |
|
|
|
|
2010 |
|
|
|
|
|
|
Profit for 2010 |
480 |
150 |
Investment at Cost: |
|
|
|
Creditors |
1,050 |
330 |
14,40,000 Equity Shares in S Ltd. |
1,620 |
– |
|
S Ltd. |
81 |
|
Trade Investment |
– |
75 |
|
|
|
|
Balance at Bank |
300 |
90 |
|
|
|
|
H Ltd. |
– |
96 |
|
|
7,641 |
3,000 |
|
7,641 |
3,000 |
You are required to prepare a consolidated balance sheet of H Ltd. and its subsidiary S Ltd. as at 31 December 2010 together with working notes, after giving effect to the following relevant information:
- Plant of S Ltd. was to be revalued on 1 January 2010 at Rs.1,620 lakh, fixtures at Rs.150 lakh and trade investments were deemed to be valued less. There were no transactions of purchase or sales of these assets during the year 2010. The directors wish to give effect to the above revaluation in the consolidated accounts.
- Depreciation has been provided for the year 2010 on plant at 10% and on fixtures at 5%.
- The stock of S Ltd. included goods purchases of Rs.120 lakh from H Ltd. who have invoiced these goods at cost plus 25%.
- A cheque of Rs.15,00,000 from H Ltd. to S Ltd. was in transfer on December 2010.
- H Ltd. acquired the equity shares in S Ltd. on 1 January 2010.