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X Ltd., Acquired All the Shares of Y Ltd - Balance Sheet

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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:

 

 

 

 

 

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.

 

 

5,00,000

-

Profit & Loss A/c

50,000

30,000

Stock

1,50,000

80,000

 

 

 

Sundry Debtors

1,00,000

60,000

 

 

 

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.

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