Jupiter Ltd. purchased control of Neptune Ltd. on 1 October 2010. Following are the balance sheets of two companies as at 31 March 2011:
|
Liabilities |
Jupiter |
Neptune |
Assets |
Jupiter |
Neptune |
|
Equity Share Capital of 310 |
10,80,000 |
5,40,000 |
Goodwill |
18,000 |
72,000 |
|
Each |
|||||
|
General Reserve |
1,08,000 |
90,000 |
Land & Building |
1,80,000 |
1,80,000 |
|
P&L A/c |
1,80,000 |
1,80,000 |
Plant & Machinery |
3,60,000 |
3,24,000 |
|
Creditors |
1,80,000 |
1,26,000 |
Stock in Trade |
2,11,500 |
1,80,000 |
|
Bills Payable to Jupiter Ltd |
– |
18,000 |
Debtors |
90,000 |
1,62,000 |
|
Contingent Liability of Jupiter Ltd for Rs. 27,000 |
– |
– |
Investment in 40,500 Shares of Neptune Ltd |
6,07,500 |
– |
|
For Bills Discounted |
– |
– |
Cash at Bank |
81,000 |
36,000 |
|
15,48,000 |
9,54,000 |
15,48,000 |
9,54,000 |
Neptune Ltd. had on 1 April 2010 Rs.90,000 in general reserve and Rs.1,08,000 (Cr.) in P&L A/ c. 10% dividend was received by Jupiter Ltd. in November for 2009–10 and this amount was credited to P&L A/c of holding company. Plant & machinery standing in the books of Neptune Ltd. as Rs.3,60,000 on the date of purchase was revalued at Rs.4,32,000. Stock of Neptune Ltd. includes Rs.28,800 received from Jupiter Ltd. on which it made a profit of 25% on cost. Ignore corporate dividend tax. Prepare the consolidated balance sheet.