H Ltd. acquired 1,28,000 equity shares of Rs.10 each in S Ltd. on 1 October 2010 for 24,00,000. The balance sheets of the two companies as at 31 March 2011 were as follows:
|
Liabilities: |
H Ltd.Rs. |
S Ltd.Rs. |
|
Equity Shares of 100 |
40,00,000 |
16,00,000 |
|
Each Fully Paid up |
||
|
General Reserve |
19,20,000 |
8,00,000 |
|
(1 April 2010) |
||
|
Profit & Loss A/c |
4,80,000 |
7,20,000 |
|
Unclaimed Dividend |
— |
8,000 |
|
Bills Payable |
— |
1,20,000 |
|
Sundry Creditors |
16,00,000 |
3,52,000 |
|
80,00,000 |
36,00,000 |
|
Assets: |
H Ltd.Rs. |
S Ltd.Rs. |
|
Land and Building |
16,00,000 |
17,60,000 |
|
Plant & Machinery |
24,00,000 |
12,00,000 |
|
Investments |
32,00,000 |
— |
|
Stock |
2,00,000 |
1,20,000 |
|
Debtors |
1,60,000 |
2,00,000 |
|
Bills Receivable |
40,00080,000 |
80,000 |
|
Bank Balance |
4,00,000 |
1,60,000 |
|
Preliminary Expenses |
— |
80,000 |
|
80,00,000 |
36,00,000 |
NOTE: Contingent liability for bills discounted Rs.80,000.
Additional information:
- On 1 April 2010, the P&L A/c of S Ltd. showed a credit balance of Rs.2,80,000 out of which a dividend of 10% was paid on 1 November 2010. The dividend was credited by H Ltd. to its P&L A/c. Ignore corporate dividend tax.
- (Creditors of S Ltd. include an amount of Rsd.1,20,000 for purchases from H Ltd. The goods are still unsold on 31 March 2011. H Ltd. sells goods at cost plus 20%.
- Bills payable of S Ltd. are all issued in favour of H Ltd. Of these bills, H Ltd. got discounted bills worth Rs.80,000.
Prepare consolidated balance sheet.