The following are the summarized balance sheets as on 31 December 2010:
|
Liabilities |
H Ltd. |
S Ltd. |
Assets |
H Ltd. |
S Ltd. |
|
Share on. 10 Each |
20,00,000 |
4,00,000 |
Fixed Assets |
8,00,000 |
3,60,000 |
|
General Reserve |
40,000 |
1,60,000 |
Stock |
3,60,000 |
1,20,000 |
|
Creditors |
80,000 |
1,20,000 |
Debtors |
1,60,000 |
1,20,000 |
|
Bills Payable |
– |
20,000 |
Bills Receivable |
20,000 |
– |
|
Bank Balance |
4,60,000 |
1,00,000 |
|||
|
30,000 Shares in 5 Ltd. at |
3,20,000 |
– |
|||
|
Cost |
|||||
|
21,20,000 |
7,00,000 |
21,20,000 |
7,00,000 |
H Ltd. acquired shares in S Ltd. on 1 January 2010 when S Ltd. had 40,000 in general reserve. No dividend was declared by S Ltd. in 2010. All bills receivable of H Ltd. are drawn on S Ltd. You are required to prepare a consolidated obligation] balance sheet on 31 December 2010.