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.