(More than one subsidiary company)
Sun Ltd. owns 80% of issued capital of Moon Ltd. and 90% of issued capital of Star Ltd. The following are the balances of all the companies as on 31.3.2011.
|
Sun Ltd. |
Moon Ltd. |
Star Ltd. |
|
|
Rs |
Rs |
Rs |
|
|
Fixed Assets |
1,70,000 |
10,000 |
27,000 |
|
Less: Provision for Depreciation |
70,000 |
6,000 |
9,900 |
|
|
1,00,000 |
4,000 |
18,000 |
|
Current Assets |
2,68,000 |
50,000 |
50,000 |
|
Investments |
|
|
|
|
Shares in Moon Ltd. |
15,000 |
|
|
|
Shares in Star Ltd. |
25,000 |
|
|
|
Current Accounts: |
|
|
|
|
Moon Ltd. |
20,000 |
|
|
|
Star Ltd. |
20,000 |
||
|
|
4,48,000 |
54,000 |
68,000 |
|
Share Capital |
3,20,000 |
20,000 |
25,000 |
|
Current Liabilities |
40,000 |
6,000 |
10,000 |
|
Current Accounts |
22,000 |
18,000 |
|
|
Proposed Dividend |
20,000 |
2,500 |
|
|
Revenue Reserve |
68,000 |
6,000 |
12,500 |
|
|
4,48,000 |
54,000 |
68,000 |
1. At the time of acquiring the shares the subsidiaries had the following Revenue Reserves:
Moon Ltd. Rs.6,000
Star Ltd. Rs.3,000
2. Neither of the subsidiaries has paid any dividend since acquisition of shares.
3. Payment of creditors of Moon Ltd. by Sun Ltd. to the extent of Rs.2,000 has not been considered in the books of Moon Ltd.
4. A remittance of Rs.2,000 by Star Ltd. to Sun Ltd. has not yet been adjusted in the books of Sun Ltd.
5. The Stock of Moon Ltd. includes Rs.3,000 purchased from Sun Ltd. which made 25% profit on cost. Sun Ltd.’s stock includes Rs.5,000 purchased from Star Ltd.’s which made 20% profit on sales.
Prepare the consolidated Balance Sheet of Sun Ltd. and its subsidiaries — Moon Ltd. and Star Ltd.