X Ltd., Acquired All the Shares of Y Ltd - Balance Sheet
X Ltd., acquired all the shares of Y Ltd., on 1/1/2010. From the Balance sheet given below prepare the a Consolidated Balance Sheet: | |||||
Liabilities | X Ltd (Rs) | Y Ltd. (Rs) | Assets | X Ltd (Rs) | Y Ltd. (Rs) |
Share capital: |
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Shares of Rs.10 each | 8,00,000 | 3,00,000 | Land & Building | 4,00,000 | 2,70,000 |
Creditors | 3,50,000 | 1,60,000 | Plant & Machinery | 2,00,000 | 1,00,000 |
Bills payable | 40,000 | 20,000 | Furniture & Fixtures | 50,000 | 20,000 |
Reserves on 1/4/2009 | 2,10,000 | 40,000 | Investment in Shares of Y Ltd. |
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5,00,000 | - | ||||
Profit & Loss A/c | 50,000 | 30,000 | Stock | 1,50,000 | 80,000 |
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| Sundry Debtors | 1,00,000 | 60,000 |
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| Bank Balance | 50,000 | 20,000 |
| 14,50,000 | 5,50,000 |
| 14,50,000 | 5,50,000 |
The Profit and Loss A/c of Y Ltd., had a credit balance of Rs.6,000 on 01/04/2009. |
2.
Prepare Consolidated Balance Sheet in the Books of H Co. Ltd. form the following Balance sheet of H co. and S Co. and given information: | |||||
Liabilities | H Co. Rs. | S Co. Rs. | Assets | H Co. Rs. | S Co. Rs. |
Preference Share capital | 1,00,000 | 40,000 | Goodwill | 20,000 | 10,000 |
Equity share capital (Rs. 100 per share) | 11,00,000 | 2,00,000 | Machinery | 6,00,000 | 1,80,000 |
Reserves | 4,00,000 | 1,50,000 | Furniture | 1,00,000 | 34,000 |
Profit & loss a/c | 2,00,000 | 50,000 | Investments 1,600 shares in S Co. | 3,20,000 | --- --- -- |
Creditors | 3,00,000 | 1,00,000 | Other assets | 10,60,000 | 3,46,000 |
Proposed dividend | ---- -- -- | 40,000 | Discount on issue of shares | --- ---- -- | 10,000 |
| 21,00,000 | 5,80,000 |
| 21,00,000 | 5,80,000 |
Information: | |||||
a) On the date of acquisition of shares by H Co. reserves and profit and loss account of S company stood at Rs. 50,000 and Rs. 30,000 respectively. | |||||
b) Machinery (Book value Rs. 2,00,000) was revalued at Rs. 3,00,000 & furniture (Book value Rs. 40,000) was revalued at Rs. 30,000 of S Co. by H Co. | |||||
c) S Co. made a bonus issue during the year out of pre-acquisition profits for Rs. 40,000 not recorded in the books. | |||||
d) Included in the creditors of S Co. is Rs. 20,000 for goods supplied by H Co. also included in the stock of S Co. are goods to the value of Rs. 8,000 which were supplied by H Co. at a profit of 25% on sales. |