H Ltd. acquired 96,000 equity shares of Rs.10 each in S Ltd. on 1 October 2010 for Rs.19,36,800. The balance sheets of two companies as on 31 March 2011 were as follows:
|
Liabilities: |
X Ltd.Rs. |
Y Ltd.Rs. |
|
Shares Capital of 100 |
30,00,000 |
12,00,000 |
|
Each |
||
|
Reserves (1 April 2010) |
14,40,000 |
6,00,000 |
|
Profit & Loss Account |
3,43,200 |
4,92,000 |
|
Bank Overdraft |
6,00,000 |
— |
|
Bills Payable |
— |
78,000 |
|
Sundry Creditors |
4,18,800 |
1,20,000 |
|
58,02,000 |
24,90,000 |
|
Assets: |
H Ltd.Rs. |
S Ltd.Rs. |
|
Land & Building |
10,80,000 |
11,40,000 |
|
Plant & Machinery |
14,40,000 |
8,10,000 |
|
Investments |
21,60,000 |
— |
|
Stock |
6,84,000 |
2,52,000 |
|
Debtors |
2,64,000 |
2,40,000 |
|
Bills Receivable |
88,800 |
— |
|
Cash |
85,200 |
48,000 |
|
58,02,000 |
24,90,000 |
- The P&L A/c of S Ltd. showed a balance of Rs.1,80,000 on 1 April 2010 out of which a dividend of 10% was paid on 1 November 2010. The dividend was correctly recorded by H Ltd.
The plant & machinery of S Ltd. which stood at Rs.9,00,000 on 1 April 2011 was considered worth Rs.10,80,000 on the date of acquisition by H Ltd. Prepare consolidated balance sheet together with work sheet.