Model: Preference shares On 1 April 2010, H Ltd. acquired 80% equity shares and 30% preference shares of S Ltd. for Rs.3,90,000 and Rs.61,000, respectively, on which date S Ltd.’s general reserve and profit and loss accounts showed balances of Rs.60,000 and Rs.8,000, respectively. On 31 March 2011, the balance sheets of two companies stood as follows:
|
Liabilities |
H Ltd. |
S Ltd. |
Assets |
H Ltd. |
S Ltd. |
|
Equity Share Capital |
20,00,000 |
4,00,000 |
Sundry Assets |
27,09,000 |
9,52,000 |
|
10% Preference Shares |
— |
2,00,000 |
80% Equity Shares in 5 |
3,90,000 |
— |
|
Capital |
|||||
|
General Reserve |
6,00,000 |
80,000 |
|||
|
P&L A/c |
2,00,000 |
78,000 |
30% Preference Shares in S Ltd. |
61,000 |
— |
|
Creditors |
3,60,000 |
1,94,000 |
|||
|
31,60,000 |
9,52,000 |
31,60,000 |
9,52,000 |
You are required to draw the consolidated balance sheet as at 31 March 2011, assuming that on 1 April 2010, there were no arrears of preference dividend.