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:

  1. 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.
  2. Bills accepted by S Ltd. are all in favour of H Ltd., which has discounted Rs.10,000 of them.
  3. Sundry assets of S Ltd. were undervalued by Rs.10,000.
  4. 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.