On 31 March 2011, the balance sheets of H Ltd. and S Ltd. stood as follows:
Liabilities |
H Ltd. |
S Ltd. |
Assets |
H Ltd. |
S Ltd. |
Authorized Capital |
Plant & Machinery |
7,623 |
7,350 |
||
Equity Share Capital: Issued |
15,000 |
9,000 |
Furniture & Fittings |
1,845 |
894 |
& SubscribXed: |
|||||
Equity Shares of 310 Each Fully Paid |
12,000 |
7,200 |
Investment in Equity shares of 5 Ltd |
4,500 |
– |
General Reserve |
2,784 |
2,070 |
Stock |
2,949 |
2,658 |
Profit & Loss A/c |
3,915 |
2,430 |
Debtors |
2,100 |
2,049 |
Bills Payable |
372 |
240 |
Bills Receivable |
360 |
285 |
Sundry Creditors |
1,461 |
1,281 |
Cash & Bank Balances |
1,230 |
306 |
Provision for Taxation |
660 |
540 |
Sundry Advances |
780 |
570 |
Other Provisions |
195 |
51 |
|||
21,387 |
13,812 |
21,387 |
13,812 |
Following additional information is available:
- H Ltd. purchased 270 thousands equity shares in S Ltd. on 1 April 2010 at which date the following balances stood in the books of S Ltd.:
General reserve: Rs.4,500 thousands; P&L A/ c: Rs.1,989 thousands - On 14 July 2010, S Ltd. declared a dividend of 20% out of pre-acquisition profits and paid corporate dividend tax (including surcharge) as 11%. H Ltd. credited the dividend received to P&L A/c.
- On 1 November 2010, S Ltd. issued three fully paid equity shares of Rs.10 each forevery five shares held as bonus shares out of pre-acquisition general reserve.
- On 31 March 2011, the stock of S Ltd. included goods purchased for Rs.150 thousands from H Ltd., which had made a profit of 25% on cost. Prepare a consolidated balance sheet as on 31 March 2011. [C.A. (Final). 2002 Modified]