on 31st Dec. 1995 were as under.Liabilities Star Ltd. Sun Ltd.Rs.AssetsStar Ltd Sun Ltd.Rs.Rs.Rs.Share capital:20,000 sharesof Rs. 50 each 10,00,000BuildingsMachinery6,00,000 2,00,0003,00,000 1,00,0001,00,000 1,50,00050,000StockDebtors80,000 shares90,0004,00,000 Investments inof Rs. 5 each3,00,000|40,000 shares of Sun Ltd.5,00,00050,000 1,20,000General reserveCash at Bank1,00,000 60,000Creditors16,00,000 6,60,00016,00,000 6,60,000-Belence of Profit & Loss A/c of Sun Ltd. on 1.1.95 was Rs. 80,000. Sun Ltd.eda dividend of 10% in March 1995 for the year 1994 which was credited by StarLtd. to its Profit & Loss A/c.Stock of Star Ltd. includes Rs. 20,000 goods which were purchased from Sun Ltd. ata profit of 20% on sale value.Show consolidated Balance Sheet as on 31st December 1995.[Marathwada, B.Com., adapted][Ans: Capital profit – Rs. 80,000; Revenue profit – Rs. 1,20,000;Capital reserve – Rs. 20,000; Balance Sheet total - Rs. 17,56,000]

When a company acquires all the shares of another company, the latter company becomes a wholly-owned…

Compal Lid. acquired the whole of the Star Ltd. Sun Ltd. Rs. Assets Star Ltd Sun Ltd. Rs. Liabilities Rs. Rs. Buildings re capital: 0,000 shares fRs. 50 each 10,00,000, 0,000 shares fRs. 5 each 6,00,000 2,00,000 3,00,000 1,00,000 1,00,000 1,50,000 50,000 Machinery Stock Debtors - 90,000 4,00,000 Investments in 40,000 shares of Sun Ltd. 5,00,000| 3,00,000 eral reserve & Loss A/d 2,00,000| 1,60,000 | Cash at Bank 50,000 1,20,000 ditors 1,00,000 60,000 16,00,000 6,60,000 16,00,000 6,60,000- Relance of Profit & Loss A/c of Sun Ltd. on 1.1.95 was Rs. 80,000. Sun Ltd. a dividend of 10% in March 1995 for the year 1994 which was credited by Star to its Profit & Loss A/c. -kof Star Ltd. includes Rs. 20,000 goods which were purchased from Sun Ltd. at ofit of 20% on sale value. w consolidated Balance Sheet as on 31st December 1995. [Marathwada, B.Com., adapted] [Ans: Capital profit – Rs. 80,000; Revenue profit - Rs. 1,20,000; Capital reserve – Rs. 20,000; Balance Sheet total - Rs. 17,56,000]

Compal Lid. acquired the whole of the Star Ltd. Sun Ltd. Rs. Assets Star Ltd Sun Ltd. Rs. Liabilities Rs. Rs. Buildings re capital: 0,000 shares fRs. 50 each 10,00,000, 0,000 shares fRs. 5 each 6,00,000 2,00,000 3,00,000 1,00,000 1,00,000 1,50,000 50,000 Machinery Stock Debtors - 90,000 4,00,000 Investments in 40,000 shares of Sun Ltd. 5,00,000| 3,00,000 eral reserve & Loss A/d 2,00,000| 1,60,000 | Cash at Bank 50,000 1,20,000 ditors 1,00,000 60,000 16,00,000 6,60,000 16,00,000 6,60,000- Relance of Profit & Loss A/c of Sun Ltd. on 1.1.95 was Rs. 80,000. Sun Ltd. a dividend of 10% in March 1995 for the year 1994 which was credited by Star to its Profit & Loss A/c. -kof Star Ltd. includes Rs. 20,000 goods which were purchased from Sun Ltd. at ofit of 20% on sale value. w consolidated Balance Sheet as on 31st December 1995. [Marathwada, B.Com., adapted] [Ans: Capital profit – Rs. 80,000; Revenue profit - Rs. 1,20,000; Capital reserve – Rs. 20,000; Balance Sheet total - Rs. 17,56,000]

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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