H Ltd acquired 80% of the equity shares and 50% of the preference shares of S Ltd on 1 April 2010 at cost of Rs.14,40,000 and Rs.60,000, respectively. The balance sheets of the companies as at 31 March 2011 were as follows:
Balance Sheets
|
Particulars |
H Ltd.Rs. |
S Ltd.Rs. |
|
Land & Building at Cost |
6,00,000 |
8,00,000 |
|
Equipment at Cost |
9,15,000 |
3,10,000 |
|
Investment in S Ltd |
15,00,000 |
— |
|
Stock |
4,00,000 |
3,50,000 |
|
Debtors |
8,00,000 |
4,50,000 |
|
Bank |
50,000 |
60,000 |
|
Current Account |
95,000 |
— |
|
Equity Shares (Rs. 10 Each) |
20,00,000 |
7,50,000 |
|
10% Cumulative Preference Shares |
— |
1,00,000 |
|
Reserves (1 April 2010) |
11,00,000 |
4,50,000 |
|
Retained Profit for 2010–11 |
1,00,000 |
90,000 |
|
Sundry Creditors |
8,00,000 |
3,50,000 |
|
Proposed Dividend |
1,00,000 |
70,000 |
|
Provision for Depreciation: |
||
|
Land & Building |
60,000 |
30,000 |
|
Equipment |
2,00,000 |
60,000 |
|
Current Account |
— |
70,000 |
|
43,60,000 |
19,70,000 |
Other information:
- A remittance of Rs.10,000 from H Ltd to S Ltd in March 2011 was not received by S Ltd until April 2011.
- Goods with an invoice value of Rs.15,000 were dispatched by H Ltd. in March 2011 but were not received by S Ltd until April 2011. The profit element included in this transaction is Rs.2,500.
- Included in the stock of S Ltd at 31 March 2011 were goods purchased from H Ltd for Rs.50,000. The profit element included in this amount was Rs.4,000.
- Proposed dividend of S Ltd included a full year’s preference dividend. No interim dividends were paid in the year by either company.
You are required to prepare a consolidated balance sheet of H Ltd and its subsidiary S Ltd as at 31 March 2011.