The following are the balance sheets of VR Ltd. and its subsidiary RS Ltd. as at 31 March 2011:
|
Liabilities |
V R Ltd |
R S Ltd |
Assets |
V R Ltd |
R S Ltd |
|
Equity Share of 310 Each Fully |
24,00,000 |
8,00,000 |
Machinery |
15,60,000 |
5,40,000 |
|
Paid |
|||||
|
General Reserve |
13,60,000 |
3,20,000 |
Furniture |
3,20,000 |
1,60,000 |
|
Profit & Loss A/c |
4,00,000 |
2,40,000 |
80% Shares in RS Ltd. at Cost |
13,60,000 |
– |
|
Creditors |
2,80,000 |
1,40,000 |
Stock |
7,20,000 |
4,80,000 |
|
Debtors |
2,00,000 |
1,20,000 |
|||
|
Cash at Bank |
2,80,000 |
2,00,000 |
|||
|
44,40,000 |
15,00,000 |
44,40,000 |
15,00,000 |
The following additional information is provided to you:
- The P&L A/c of RS Ltd. stood at Rs.1,20,000 on 1 April 2010 whereas general reserve has remained unchanged since that date
- VR Ltd. acquired 80% of shares in RS Ltd. on 1 October 2010 for Rs.13,60,000. As mentioned above.
- Included in debtors of RS Ltd. is a sum of Rs.40,000 due from VR Ltd. for goods sold at a profit of 25% on cost price. Till 31 March 2011, only one half of the goods had been sold while the remaining goods were laying tin warehouse of VR Ltd. as on that date. Prepare the consolidated balance sheet as at 31 March 2011.