Model: Sale of investments The summarized balance sheets of A Ltd. and B Ltd. are as follows:

Balance Sheets as at 31 December 2010

Particulars

A Ltd. Rs.

B Ltd. Rs.

Sources of Funds:

Equity Shares of 10 Each

8,00,000

2,00,000

Reserves

80,000

20,000

Profit & Loss A/c as on 1 January 2010

1,20,000

40,000

Profit for the Year

32,000

32,000

Add: Dividends from B Ltd.

16,000

Less: Dividends Paid

(20,000)

Creditors

1,20,000

80,000

11,68,000

3,52,000

Application of Funds:

Fixed Assets

8,00,000

3,20,000

Current Assets

1,28,000

32,000

Shares in B Ltd. at Cost 12,000 Shares

2,40,000

11,68,000

3,52,000

A Ltd. had acquired 16,000 shares in B Ltd. at Rs.20 each on 1 January 2010 and sold 4,000 of them at the same price as on 1 October 2010. The sale is cum dividend. An interim dividend of 10% was paid by B Ltd. on 1 July 2010. Draft the consolidated balance sheet as at 31 December 2010.