Consolidated to prepare a consolidated profit & loss A/c for the year ended 31 December 2010, suitable for incorporation in the published accounts of A Ltd which will not include a separate P&L A/c for the holding company.

Particulars

A Ltd.Rs.

B Ltd.Rs.

P&L A/c Balance as 1

7,20,000

3,00,000

January 2010

Trading Profit

14,20,000

8,00,000

Dividends (Gross) from B Ltd (Preference)

1,08,000

Dividends (Gross) from B Ltd (Ordinary)

1,50,000

23,98,000

11,00,000

Depreciation

2,40,000

80,000

Debentures Interest

2,00,000

Taxation

4,40,000

3,00,000

Director’s Emoluments

1,40,000

60,000

Dividends Paid:

60,000

6% Preference:

60,000

On 30

JuneOn 31 December

Ordinary Shares:

Interim on 30 June

2,40,000

1,00,000

Final on 31December

2,40,000

1,00,000

P&L A/c Balance as on 31 December 2010

8,98,000

3,40,000

23,98,000

11,00,000

Information Relating toShare Capital:

Ordinary Shares of Rs.1 Each Fully Paid

80,00,000

40,00,000

6% Preference Shares of Rs.1 Fully Paid

20,00,000

Shares in B Ltd Held by A Ltd:

Ordinary Shares

30,00,000

Acquired on 1 July 2010

Preference Shares

18,00,000

Acquired on 1 January2010

Income and expenditure are deemed to accrue evenly throughout the year. All dividends are payable out of the current year’s profits. The directors of B Ltd. resigned on 1 July 2010 and were replaced on that day by directors of A Ltd who are to receive the same remuneration as the former directors.