from the balance sheets and information given below prepare a consolidated balance s 608528
From the balance sheets and information given below, prepare a consolidated balance sheet.
Liabilities |
H Ltd. |
S Ltd. |
Assets |
H Ltd. |
S Ltd. |
Share Capital: |
Sundry Assets |
4,00,000 |
60,000 |
||
Rs.10 per Share Fully Paid |
5,00,000 |
1,00,000 |
Stock in Trade |
3,05,000 |
1,20,000 |
Profit & Loss A/c |
2,00,000 |
60,000 |
Debtors |
65,000 |
85,000 |
Reserves |
50,000 |
30,000 |
Bills Receivable |
5,000 |
– |
Creditors |
1,00,000 |
60,000 |
Shares in S Ltd. |
||
Bills Payable |
– |
15,000 |
7,500 Shares at Cost |
75,000 |
– |
8,50,000 |
2,65,000 |
8,50,000 |
2,65,000 |
Additional information:
- All profits of S Ltd. have been earned since the shares were acquired by H Ltd. but the reserve of Rs.30,000 was already there at the time.
- Bills accepted by S Ltd. are all in favour of H Ltd., which has discounted Rs.10,000 of them.
- Sundry assets of S Ltd. were undervalued by Rs.10,000.
- The stock in trade of H Ltd. includes Rs.25,000 bought from S Ltd. at a profit of 25% on cost to the latter.