3A. From the following balance sheet of H Ltd. & S Ltd. as on 31st March, 2016:
Particulars
Note. No
H Ltd
S Ltd.
(1)
(2)
(3)
(4)
I. EQUITY AND LIABILITIES
1. Share holder’s Funds:
A. Share Capital – Equity shares of Rs. 10 each
B. Reserves and Surplus :
General Reserve
Profit & Loss Account
6,00,000
1,50,000
80,000
2,00,000
70,000
50,000
2. Share Application Money Pending Allotment:
-----
-----
3. Non –Current Liabilities
-----
-----
4. Current Liabilities:
(a) Trade Payables – Trade Creditors
(b) Bills Payable
90,000
NIL
60,000
30,000
Total
9,20,000
4,10,000
II. Assets
(1) Non – Current Assets:
(a) Fixed Assets
(i)Land & Buildings
(ii) Furniture
(i) Tangible Assets:
(b) Non – current investments- 70% in shares of S Ltd @ cost
3,00,000
70,000
-------
2,60,000
1,20,000
45,000
-----
NIL
(2) Current Assets:
(a) Inventories
(b) Bills Receivables
(c) Debtors
(d) Preliminary Expenses
(e) Other Current assets-Cash @bank
1,75,000
10,000
55,000
-----
50,000
1,89,000
-----
40,000
6,000
10,000
Total
9,20,000
4,10,000
Additional Information:
H Ltd. Aquired the shares of S Ltd. On 30 th June 2004.
On 1st April 2004, S Ltd's general reserve and profit and loss a/c stood @ Rs. 70,000 and Rs. 10,000 respectively.
All the bills payable of S Ltd. Were accepted in favour of H ltd.
The stock of H ltd. Includes Rs. 50,000 purchased from S ltd. The Profit added was 25% on cost.
S Ltd. Decided to issue bonus shares out of post-acquisition in the ratio of one share for every 10 share held.
The directors are advised that Land and Buildings of S Ltd. Are undervalued by 20,000 and Furniture of S Ltd. Over Valued by 10,000. These assets have to be adjusted accordingly
No part of the preliminary expenses was written off in the year ended 31.3.2005. You are required to prepare the consolidated Balance sheet as on 31.3.2005. .
Definition Definition Amount earned or lost on the sale of one or more items is referred to as the profit or loss on that item
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