Following are the balance sheets of H Ltd and S Ltd as
|
Liabilities |
H Ltd |
S Ltd |
Assets |
H Ltd |
S Ltd |
|
Equity Shares Capital of f. 10 |
18,00,000 |
3,00,000 |
Land & Building |
6,00,000 |
3,00,000 |
|
Each Fully Paid |
|||||
|
General Reserve |
1,50,000 |
90,000 |
Machineries |
8,40,000 |
1,50,000 |
|
Profit & Loss A/c |
2,40,000 |
1,20,000 |
21,000 Shares of 5 Ltd |
3,00,000 |
– |
|
Sundry Creditors |
3,00,000 |
1,20,000 |
Stock |
2,10,000 |
1,20,000 |
|
Bills Payable |
30,000 |
45,000 |
Debtors |
4,50,000 |
60,000 |
|
Bills Receivable |
30,000 |
– |
|||
|
Cash at Bank |
90,000 |
45,000 |
|||
|
25,20,000 |
6,75,000 |
25,20,000 |
6,75,000 |
Additional information:
- All the bills receivable of H Ltd including those discounted were accepted by S Ltd
- When 18,000 shares were acquired by H Ltd in S Ltd, it had Rs.60,000 general reserve and Rs.15,000 credit balance in P&L A/c
- At the time of acquisition of further 3,000 shares by H Ltd, S Ltd had Rs.75,000 general reserve and Rs.84,000 credit balance in P&L A/c from which 20% dividend was paid by S Ltd and dividend received by H Ltd on these shares were credited to P&L A/c
- Stock of S Ltd includes Rs.60,000 purchased from H Ltd which has made 25% profit on cost
- Both companies have proposed dividend—H Ltd 10%; S Ltd 15% but no effect has been given in the above balance sheets
Prepare consolidated balance sheet as at 31 March 2011.