The following are the balance sheets of H Ltd. and S Ltd. on 31 December 2010:
|
Liabilities |
H Ltd. |
S Ltd. |
Assets |
H Ltd. |
S Ltd. |
|
Share Capital: |
Goodwill |
15,000 |
10,000 |
||
|
Shares of 310 Each |
3,00,000 |
1,25,000 |
Fixed Assets |
2,90,000 |
1,00,000 |
|
General Reserve |
80,000 |
47,500 |
Stock |
80,000 |
40,000 |
|
Profit for the Year |
1,10,000 |
60,000 |
Investments in 7,500 Shares of S Ltd. |
1,00,000 |
– |
|
Bills Payable |
10,000 |
– |
Bills Receivable |
– |
7,500 |
|
Sundry Creditors |
50,000 |
17,500 |
Sundry Debtors |
40,000 |
57,500 |
|
Cash in Hand |
25,000 |
35,000 |
|||
|
5,50,000 |
2,50,000 |
5,50,000 |
2,50,000 |
- H Ltd. acquired the shares of S Ltd. on 1 September 2010
- Bills payable of H Ltd. was wholly in favour of S Ltd.
- Debtors of S Ltd. include Rs.7,500 owed by H Ltd.
- Stock of H Ltd. includes Rs.5,000 worth of goods bought from S Ltd. on which the latter company has made a profit of 25% on cost. Prepare the consolidated balance sheet.