Mili Ltd. took over the control of Noorie Ltd. on 1 July 2010 by acquiring 30,000 shares at a price of Rs.4,80,000.
Balance Sheet as at 31 March 2011
|
Liabilities |
Mili Ltd. |
Noori Ltd. |
Assets |
Mili Ltd. |
Noori Ltd. |
|
Share of 310 Each |
10,00,000 |
4,00,000 |
Goodwill |
80,000 |
60,000 |
|
General Reserve |
2,00,000 |
1,20,000 |
Buildings |
4,00,000 |
2,60,000 |
|
P&L A/c |
2,80,000 |
1,80,000 |
Plant |
3,20,000 |
1,80,000 |
|
Creditors |
1,60,000 |
1,00,000 |
Stock |
2,00,000 |
1,80,000 |
|
Bills Payable |
– |
80,000 |
Debtors |
40,000 |
1,50,000 |
|
Investments: 30,000 Shares in Noorie Ltd. |
4,80,000 |
– |
|||
|
Bank |
1,20,000 |
50,000 |
|||
|
16,40,000 |
8,80,000 |
16,40,000 |
8,80,000 |
The P&L A/c and general reserve of Noorie Ltd. showed a balance of Rs.1,00,000 & Rs.1,20,000, respectively, on 1 April 2010. A dividend was paid at the rate of 15% by Noorie Ltd. in the month of September 2010 for the year 2009–10. This dividend was credited to P&L A/c by Mili Ltd. The bills payable of Noorie Ltd. were all issued in favour of Mili Ltd. The receiving company got these bills discounted with the bank. Creditors of Noorie Ltd. included Rs.40,000 due to Mili Ltd. for goods supplied by the latter company. Stock of Noorie Ltd. included Rs.16,000 worth of stock purchased from Mili Ltd. at a profit of Rs.% on cost. The plant of Noorie Ltd. with book value of Rs.2,00,000 on 1 April 2010 was revalued at Rs.3,00,000 at the time of taking the control of Noorie Ltd. The new value has not been incorporated in the books. Prepare consolidated balance sheet as at 31 March 2011. Show clearly all the calculations and workings.