ILLUSTRATIONS: 1) Liabilities Share Capital of `10 each Sundry Creditors Balance sheet at 31st December, 2003 H. Ltd. S. Ltd.

Assets H. Ltd. S. Ltd.

`
1,00,000 1,00,000

`
50,000 30,000 Sundry Assets Investments: 5,000 shares at par

`
1,50,000 50,000 2,00,000

`
80,000 80,000

2,00,000 80,000 Prepare a Consolidated Balance Sheet. 2) Balance sheet at 31st December, 2003 Liabilities H. Ltd. S. Ltd. Assets

H. Ltd.

S. Ltd.

`
Share Capital of `10 each Sundry Creditors 1,00,000 1,00,000

`
50,000 30,000 Sundry Assets Investments: 5,000 shares at par

`
1,30,000 70,000 2,00,000

`
80,000 80,000

2,00,000 80,000 Prepare a Consolidated Balance Sheet. 3) Balance sheet at 31st December, 2003 Liabilities H. Ltd. S. Ltd. Assets

H. Ltd.

S. Ltd.

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Share Capital of `10 each Sundry Creditors 1,00,000 1,00,000

`
50,000 30,000 Sundry Assets Investments: 5,000 shares at par

`
1,70,000 30,000 2,00,000

`
80,000 80,000

2,00,000 80,000 Prepare a Consolidated Balance Sheet. 4) Balance sheet at 31st December, 2003 Liabilities H. Ltd. S. Ltd. Assets

H. Ltd.

S. Ltd.

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Share Capital of `1 each Sundry Creditors 12,000 8,000

`
5,000 3,000 Sundry Assets Investments: 4,000 shares at par

`
16,000 4,000 20,000

`
8,000 8,000

20,000 8,000 Prepare a Consolidated Balance Sheet. 5) Balance sheet at 31st December, 2003 Liabilities H. Ltd. S. Ltd. Assets

H. Ltd.

S. Ltd.

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Share Capital of `10 each Profit & Loss A/c General Reserve A/c 1,00,000 20,000 10,000

`
50,000 5,000 4,000 Sundry Assets Investments: 5,000 shares in S Ltd.

`
65,000 75,000

`
60,000 -

Sundry Liabilities

10,000 1,000 1,40,000 60,000 1,40,000 60,000 H. Ltd. acquired the shares of S. Ltd. on 31st December 2003. Prepare a Consolidated Balance Sheet. 6) Balance sheet at 31st December, 2003 Liabilities H. Ltd. S. Ltd. Assets H. Ltd. S. Ltd.

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Share Capital of `10 each Profit & Loss A/c General Reserve A/c Sundry Liabilities

1,00,000 50,000 Sundry Assets 60,000 63,000 10,000 4,000 Investments: 10,000 5,000 4,000 shares in S Ltd. 65,000 5,000 4,000 1,25,000 63,000 1,25,000 63,000 st H Ltd. acquired the shares of S Ltd. on 1 January, 2003. On that date the Profit & Loss Account of S. Ltd. had a credit balance of `1,000 & in Reserve `3,000. Prepare a Consolidated Balance Sheet. 7) Balance sheet at 31st December, 2003 Liabilities H. Ltd. S. Ltd. Assets H. Ltd. S. Ltd.

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Share Capital of `1 each Profit & Loss A/c General Reserve A/c Sundry Liabilities

12,000 5,000 Sundry Assets 20,000 8,000 2,000 1,500 Investments: 5,000 500 5,000 shares in S Ltd. 6,500 7,500 1,000 26,500 8,000 26,500 8,000 Shares were acquired by H Ltd. on 30th September 2002. Reserves in S Ltd. show opening balance b/d. P&L A/c in S Ltd. shows the profits earned during the year. Prepare Consolidated Balance Sheet. 8) The following balances are extracted from the Balance Sheets of X Ltd. & Y Ltd.: Particulars X Ltd. Y Ltd. Bills Payable 7,50,000 4,50,000 Trade Creditors 5,00,000 7,00,000 Bills Receivables 3,50,000 5,00,000 Trade Debtors 8,00,000 7,00,000 Contingent Liability for Bills Discounted 2,00,000 1,50,000 Additional Information: 1. X Ltd. is wholly owned subsidiary of Y Ltd. 2. Creditors of X Ltd. include `2,50,000 due to Y for goods supplied by it for `3,00,000. Debtors of X however shows a debit balance of `3,00,000 due from Y. Y had remitted `50,000 by Demand Draft to X which was not received by X on the Balance Sheet date. 3. Bills Payable of Y include `3,00,000 drawn in favour of X Ltd. had discounted bills worth `1,20,000 with its bankers. Determine how the above given balances will be disclosed in the Consolidated Balance Sheet of X Ltd. 9) The following are the balance Sheet of H Ltd. & its subsidiary as on 31st December 2003: Balance sheet at 31st December, 2003

Liabilities Share Capital of `1 per share Reserves Bills payable Creditors Profit & Loss A/c

H. Ltd.

S. Ltd.

Assets Buildings Plant Stock Shares in S Ltd. Debtors Bills Receivable Cash

H. Ltd.

S. Ltd.

`
10,000 4,000 2,000 5,000 4,000 25,000

`
8,000 3,000 1,000 4,000 2,000 18,000

`
4,000 1,000 4,000 6,000 5,000 3,000 2,000 25,000

`
6,000 6,000 3,000 2,000 1,000 18,000

Debtors of H Ltd. include `2,000 due from S Ltd. & Bills Payable of H. Ltd. included a bill of `500 accepted in favour of S Ltd. A loan of `1,000 given by H Ltd. to S Ltd. was also included in the items of debtors & creditors respectively. `500 was transferred by S Ltd. from Profit & Loss Account to Reserve out of current years profit. Shares were purchased on 30 th June 2003 at par. Prepare Consolidated Balance Sheet. 10) M. Ltd. acquired 3,200 equity shares of L Ltd. on 31 st December, 2007. The summarized balance sheets of the two companies as that date are given below: Liabilities M. Ltd. L. Ltd. Assets M. Ltd. L. Ltd.

`
Share Capital (`100 each, fully paid) General Reserves Profit & Loss A/c Bank Loan Bills Payable (including `6,000 to M Ltd.) Sundry Creditors

`
3,00,000 4,80,000 6,80,000 2,40,000 31,600

`
3,60,000 3,18,800 72,000 80,000 16,000 8,46,800

10,00,000 4,00,000 Land & Buildings Plant & Machinery 4,80,000 3,40,000 Investments in L Ltd. 1,14,400 72,000 (at cost) 1,60,000 Stock sundry Debtors 16,800 Bills Receivables (including 6,000 from 94,400 18,000 L Ltd.) Cash at Bank 18,48,800 8,46,800

29,200 18,48,800

You are given that: (a) L. Ltd. made a bonus issue on 31st December, 2007 of one equity share for every four shares held by its shareholders. This has not been accounted for. (b) Sundry Creditors of M Ltd. include `24,000 due to L Ltd. (c) The directors have decided to revalue Land & Buildings & Plant & Machinery of L Ltd. at `4,00,000 & `2,98,800 respectively. Prepare consolidated Balance Sheet as at 31st December, 2007 with workings. (Oct. 01, 04, 06, adapted) st 11) A Ltd. acquired 8,000 shares of 10 each in B Ltd. on 31 December, 2003. The summarized Balance Sheets of the two companies as on that date were as follows: Particulars A Ltd. B Ltd. ` Liabilities: `

Share Capital 30,000 shares of `10 each 10,000 shares of `10 each Capital Reserve General Reserve Profit & Loss Account Loan from B Ltd. Bills Payable (including `200 to A Ltd.) Creditors Note on the Balance Sheet of A Ltd: There is a contingent liability for bills discounted of `1,000 Assets: Fixed Assets Investment in B Ltd. at cost Stock-in-hand Loan to A Ltd. 3,00,000 25,000 38,200 2,100 17,900 1,00,000 52,000 5,000 18,000 1,700 5,000

3,83,200 1,50,000 1,70,000 40,000 1,200 20,000 2,000 3,83,200

1,81,700 1,44,700 20,000 2,000 10,000 5,000 1,81,700

Bills Receivable (including `200 from B Ltd.) Debtors Bank You are given the following information: (1) B Ltd. made a bonus issue on 31st December, 2003 of one share for every two shares held, reducing the capital reserve equivalently, but the transaction is not shown in above balance sheets. (2) Interest receivable (`100) in respect of loan due by A Ltd. to B Ltd. has not been credited in the account of B Ltd. (3) The directors decided that the Fixed Assets of B ltd. were overvalued & should be written down by `5,000. Prepare the Consolidated Balance Sheet as at 31st December, 2003 showing your workings. (Mar. 98, CA Final Mar. 92, 95, adapted) 12) The following is the summarized Balance sheet of X Ltd. & Y Ltd. as on 31 st December, 2007: Liabilities X. Ltd. Y. Ltd. Assets X. Ltd. Y. Ltd.

`
Share Capital of `10 each 20,00,000 8,00,000 Profit & Loss A/c 6,00,000 General Reserve A/c 2,00,000 Sundry Creditors

`
6,00,000 2,50,000 3,50,000 1,40,000 Freehold Premises Plant & Machinery Furniture Debtors Stock Investment in Shares in Y Ltd. (40,000 shares of 10 each.) Cash in Hand

`
9,00,000 7,00,000 1,60,000 6,00,000 6,40,000 5,20,000

`
2,40,000 3,20,000 60,000 3,40,000 3,20,000 -

80,000 60,000 36,00,000 13,40,000 36,00,000 13,40,000 You are required to prepare a consolidated Balance Sheet as on 31 st December 2007, showing in detail necessary adjustments & taking into consideration the following information:

(a) X Ltd. acquired shares of Y Ltd. as on 1-1-2007 when the balances in their Profit and Loss Account & General Reserve were `1,50,000 & `1,60,000 respectively. (b) Stock of `3,20,000 held by Y Ltd. consists of `1,20,000 goods purchased from X Ltd. who charges profit at 25% on cost. (c) Included in Debtors of X Ltd. `30,000 due from Y Ltd. 13) The following Balance Sheet are as on 31st March, 2007: Liabilities Y. Ltd. S. Ltd. Assets (Oct. 99, Mar. 05, adapted) Y. Ltd. S. Ltd.

`
Share Capital

`
13,00,000 7,80,000 1,20,000 10,00,000 2,40,000 7,60,000 1,40,000 30,000 43,70,000

`
8,80,000 2,80,000 70,000 3,80,000 5,20,000 80,000 20,000 22,30,000

Building Machinery Equity shares of `10/24,00,000 12,00,000 Furniture each Investment Reserves & Surplus 9,00,000 2,00,000 Current Asset General Reserve 3,40,000 4,80,000 Stock Profit & Loss A/c Debtors Current Liabilities 3,00,000 1,50,000 Bills Receivable Creditors 3,30,000 1,40,000 Bank Balance Bills Payable 1,00,000 60,000 Outstanding Expenses 43,70,000 22,30,000 The following further information is available: (i) Y Ltd. acquired 90,000 shares of S Ltd. as on 31st March, 2006. (ii) Debtors of Y Ltd. include `50,000 due from S Ltd. (iii) Bills Receivable of S Ltd. include `30,000 from Y Ltd.

(iv) Stock of S Ltd. includes goods purchased from Y Ltd. of `40,000 which includes profit charged by Y Ltd. 25% on cost. (v) The position of Reserves & Surplus of S Ltd. as on 31 st March 2006 was follows: General Reserve `1,50,000 Profit & Loss A/c `3,00,000 st You are required to prepare a consolidated Balance Sheet as on 31 March 2007. (Oct. 02, 05, April 11, adapted) st 14) The balance sheets of Albert Limited & Ballavi Limited as on 31 March, 2008 were as follows: Liabilities Albert Ballavi Assets Albert Ballavi Ltd. Ltd. Ltd. Ltd.

`
Share Capital (Equity shares of `10/- each) General Reserve on 1-42007 Sundry Creditors Bills Payable Profit & Loss A/c on 1-42007

`
1,00,000 2,00,000 5,00,000 2,00,000 3,40,000 2,40,000 30,000 50,000

`
50,000 1,00,000 2,00,000 1,00,000 70,000 30,000 20,000

Goodwill 10,00,000 2,50,000 Buildings Machinery 2,00,000 80,000 Stock 2,00,000 1,00,000 Sundry Debtors 50,000 30,000 Investment 60,000 60,000 Bills Receivable Cash & Bank Balance

Profit & Loss A/c as on 1,50,000 50,000 31-3-2008 16,60,000 5,70,000 The following information is given: (b) Sundry debtors of Albert Ltd. include `30,000 due from Ballavi Ltd. (c) Bills receivable of Ballavi Ltd. include `10,000 due from Albert ltd.

16,60,000

5,70,000

(a) Albert Ltd. acquired 15,000 equity shares of Ballavi Ltd. for `1,90,000 on 1-04-2007.

(d) The stock of Ballavi Ltd. includes Goods purchased from Albert Ltd. at `10,000 which includes profit charged by albert Ltd. @ 25% on cost. (e) Albert & Ballavi Ltd. have proposed 10% dividend for 2007-08 but effect has not been given in accounts. Prepare a consolidated balance sheet of Albert & Ballavi ltd. as at 31 st March, 2008 with working of minority interest & cost of control. (Mar. 2000, adapted) 15) The following are the balance sheets of Satyug ltd. & kaliyug Ltd. as at 31 st March, 2001. Liabilities Satyug Kaliyug Assets Satyug Kaliyug Ltd. Ltd. Ltd. Ltd.

`
Equity Shares of `100 each fully paid Reserves & Surplus: General Reserve Profit & loss A/c Current liabilities: Creditors for goods Expenses payable Bills payable 90,00,000

60,00,000 Fixed Assets 87,20,000 23,60,000 Other Investments 5,50,000 17,10,000 Investment in 47,10,000 6,86,500 Kaliyug Ltd. 35,60,000 8,19,000 3,45,000 Current assets: Stock 41,60,000 26,50,000 1,05,92,600 17,68,000 Debtors 81,10,000 19,90,000 1,17,800 1,51,300 Bills Receivable 1,45,500 2,17,400 68,600 45,200 Advances 62,500 68,600 2,53,08,000 89,96,000 2,53,08,000 89,96,000 The following further information is furnished: (1) Satyug ltd. acquired 30,000 equity shares of Kaliyug ltd. on 1 st April, 2000, when the reserves & Surplus position of kaliyug ltd. was as under: (i) General Reserve `26,86,500 (ii) Profit & Loss A/c (Cr.) `8,65,000 st (2) On 1 October, 2000, Kaliyug ltd. issued fully bonus shares in the ratio of 1:2, out of preacquisition general reserve. No entry is made in the books of Satyug ltd. for the receipt of these bonus shares. (3) on 30th June, 2000, Kaliyug Ltd. declared 20% dividend out of pre-acquisition profits & Satyug ltd. credited the receipt of dividend to its Profit & Loss A/c. (4) Kaliyug Ltd. owed to Satyug ltd. `6,00,000 for purchase of stock from Satyug Ltd. Half of the stock is sold by Kaliyug Ltd. & the balance half is held as unsold as on 31 st march,2001. Satyug Ltd. sold goods to kaliyug Ltd. at cost plus 20% (5) Kaliyug Ltd. acquired machinery from Satyug ltd. for `3,80,000. The book value of the machinery to Satyug Ltd. was `3,40,000. Ignore depreciation effect of the profit element on machinery sold by Satyug ltd. to Kaliyug Ltd.

(6) Kaliyug ltd. has accepted bills of exchange drawn by Satyug ltd. which remains outstanding as on 31st March, 2001, to the tune of `25,500. Prepare a Consolidated Balance Sheet as on 31st March, 2001. 16) The following are the summarized Balance sheets of X ltd. & Y ltd. as at 31st December, 2002. Liabilities X Ltd. Y Ltd. Assets X Ltd. Y Ltd.

`
Authorised, issued & paid-up Capital: Equity Shares of `10 each 12% preference Shares of `10 each General Reserve Profit & loss Account Balance 10% Debentures of 100 each Proposed Dividends: On Equity shares On Preference shares Debenture interest accrued Trade Creditors 8,00,000 3,60,000 2,40,000 1,20,000 -

`
Fixed assets Investments: 30,000 Equity Shares 15,000 Preference shares 250- 10% Debentures (at face value) Current Assets

`
10,15,000 4,50,000 1,80,000 25,000 2,60,000

`
8,09,000 4,80,000

4,00,000 2,00,000 2,00,000 1,40,000 50,000 60,000 24,000 5,000

4,10,000 2,10,000 19,30,000 12,89,000 19,30,000 12,89,000 (1) X Ltd. acquired its interest in Y Ltd. on 1st January, 2002, when the balance to the General Reserve Account of Y Ltd. was `1,80,000. (2) The Balance to the profit & loss Account of Y Ltd. as on 31 st December, 2002 was arrived at as under: ` Balance on 1-1-2002 Current Profit (including Dividends) ` 40,000 2,04,000 2,44,000

Deduct: Transfer to General Reserve 20,000 Proposed dividends 84,000 1,04,000 Balance as on 31-12-2002 1,40,000 (3) Balance to the profit & loss account of Y Ltd. as on 1-1-2002 was after providing for dividends on preference shares & 10% dividends on equity shares for the year ended 31 st December, 2001; these dividends were paid in cash by Y ltd. in May 2002. (4) No entries have been made in the books of X Ltd. for debenture interest due or for proposed dividends of Y Ltd. for the year ended 31-12-2002 (5) Mutual indebtedness of `24,000 is reflected in the balances shown in the Balance Sheet. (6) Y ltd. in October 2002, issued fully paid-up bonus shares in the ratio of one share for every four shares held- by utilizing its general reserve. This was not recorded in the books of both the companies.

(7) Dividend paid by Y ltd. for 2001 was credited to profit & loss A/c of X Ltd. instead of crediting to investments in Subsidiary Company A/c. (8) X Ltd. acquired both the equity shares & preference shares of Y Ltd. on 1 st January, 2002. From the above information, you are required to prepare the Consolidated Balance Sheet of X ltd. & its subsidiary Y Ltd. as at 31st December, 2002. All workings are to form part of your answer. (Oct. 98 adapted) 17) The following are the balance sheets of X Ltd. & Y Ltd. as on 31 st Dec. 2005. Liabilities X Ltd. Y Ltd. Assets X Ltd. Y Ltd.

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Share Capital: Shares of `10 each General Reserve P & L Balance (1-1-2005) Profit for the year 2005 Creditors Notes: 4,00,000 1,00,000 60,000 1,00,000 40,000 7,00,000

`
Fixed Assets 1,00,000 Investments 40,000 Debtors 15,000 Other Current Assets 40,000 20,000 2,15,000

`
3,90,000 1,20,000 70,000 1,20,000

`
1,40,000 50,000 25,000

7,00,000

2,15,000

(1) X Ltd. purchased on 1st July, 2005, 8,000 shares in Y ltd. @ `15 per share. (2) Stock in Y Ltd. includes `15,000 worth of goods purchased from X Ltd. The company sells goods at 25% above cost. (3) Creditors of Y ltd. include `10,000 due to X Ltd. Prepare consolidated balance sheet as on 31-12-05. (Mar. 96, adapted)

18) Bipasha Ltd. acquired as investment 24,000 shares in Ash Ltd. for `2,48,000/- on 1st July, 2007. The Balance Sheet of the two companies on 31 st March, 2008 were as follows: Liabilities Bipasha Ash Assets Bipasha Ash Ltd. Ltd. Ltd. Ltd.

`
Shares of `10 each General Reserve P & L Balance Bills payable Creditors

14,40,000 4,00,000 Machinery 11,20,000 2,40,000 2,56,000 64,000 Furniture 1,60,000 1,12,000 1,28,000 40,000 Investments 2,48,000 64,000 32,000 Stocks 1,60,000 80,000 80,000 48,000 Debtors 96,000 56,000 Cash at Bank 1,44,000 64,000 Bills Receivable 40,000 32,000 19,68,000 5,84,000 19,68,000 5,84,000 The following additional information is provided to you: (i) General Reserve appearing in the balance sheet of Ash ltd. has remained unchanged since 31 st March. 2007. (ii) Profit earned by Ash ltd. for the year ended 31st March, 2008 amounted to `32,000/(iii) On 1st February, 2008 Bipasha Ltd. sold to Ash Ltd. goods costing `12,800/- for the `16,000/-, 25% of these goods remained unsold with ash ltd. on 31 st March, 2008. Creditors of Ash Ltd. include `6,400/- due to Bipasha Ltd. on account of these goods.

(iv) Out of Ash Ltd. acceptances `24,000/- are those which have been accepted in favour of Bipasha Ltd., out of which Bipasha Ltd. had endorsed by 31st March 2008 `12,800 worth of Bills Receivable in favour of its creditors. You are required to draw a consolidated Balance Sheet as at 31 st March, 2008. (Oct. 04, April 10, adapted) st 19) The balance sheets of Amul Ltd. & Butter Ltd. as on 31 March, 2006 were as under: Liabilities Amul Butter Assets Amul Butter Ltd. Ltd. Ltd. Ltd.

`
Share Capital: Shares of `10 each General Reserve P & L Balance (1-4-2005) Profit for the year ended 31st March, 2006 Creditors Bills payable 4,00,000 60,000 80,000 1,00,000 1,00,000 60,000 8,00,000

`
Land & Building 1,00,000 Plant & Machinery 20,000 Stock 40,000 Sundry Debtors Bills Receivable 50,000 Investments: 90,000 6,000 shares of Butter Ltd. at cost Cash/Bank Balances 3,00,000

`
1,50,000 4,00,000 80,000 20,000 -

`
1,70,000 60,000 50,000

1,30,000 20,000 8,00,000

20,000 3,00,000

Additional Information: (a) Shares were acquired by Amul ltd. as on 1st Oct. 2005. (b) Included in the debtors of Butter Ltd. is `20,000 due from Amul Ltd. (c) Bills Receivable held by Butter Ltd. are all accepted by Amul Ltd. (d) The stock of Butter Ltd. includes goods purchased from Amul Ltd. at `10,000 which includes profit charged by Amul Ltd. @25% on cost. Prepare the consolidated balance sheet of Amul Ltd. & Butter Ltd. as on 31 st March, 2006. Show working of: (a) Capital Profits (b) Current profits (c) Minority Interest (d) Goodwill (Oct.96, Apr. 09, adapted) 20) The following are the Balance sheet of H. Ltd. & S. Ltd. on 31-3-2008. Liabilities H. Ltd. S. Ltd. Assets H. Ltd. S. Ltd.

`
Equity Shares of `10 each General Reserve (1-4-07) P & L Balance Bills payable Creditors

`
4,00,000 5,00,000 2,20,000 5,50,000 75,000 85,000 30,000 90,000

`
3,50,000 2,55,000 45,000 90,000 90,000 40,000

Building 12,00,000 4,00,000 Plant & Machinery 2,50,000 1,50,000 Furniture 2,50,000 1,80,000 Investment in S Ltd. 50,000 50,000 (30,000 shares on 12,00,000 90,000 10-2007) Stock Sundry Debtors Bills Receivable Cash at Bank

19,50,000 8,70,000 19,50,000 8,70,000 Prepare Consolidated Balance Sheet as on 31-3-2008 with the following additional information:

(i) The balance in Profit & Loss Account of S. Ltd. was `80,000 (credit) on the date of acquisition of shares of S. Ltd. by H. Ltd. (ii) Profits accrue evenly during the year (iii) Bills accepted by S Ltd. were all in favour of H Ltd. & there were no bills receivable from any other debtor of H ltd. (iv) Sundry Debtors of H Ltd. included 40% of the goods sold to S ltd. (v) Closing stock of S Ltd. included goods of `25,000 purchased from H Ltd. who invoiced them at 25% above cost. (vi) The revaluation of fixed assets of S ltd. on acquisition of Building at `4,00,000, Machinery at `2,50,000 & furniture at ` 40,000 was agreed but adjustments were pending in the books. However, corresponding depreciation on increase or decrease of such fixed assets is to be ignored. (Mar. 99, adapted) 21) A Ltd. acquired 16,000 equity shares of `10 each in B ltd. on 1st July, 2006. The balance sheets of the two companies as on 31st December, 2006 were as follows: (Mar. 07 adapted) Liabilities A. Ltd. B. Ltd. Assets A. Ltd. B. Ltd.

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Share Capital Reserve P & L Balance Bank Overdraft Bills payable Creditors 5,00,000 24,000 57,200 1,00,000 2,16,000 69,800

`
2,00,000 1,00,000 82,000 13,000 20,000 Land & Building Plant & Machinery Investment in B Ltd. (at cost) Stock Sundry Debtors Bills Receivable Cash

`
1,80,000 2,40,000 3,30,000 1,44,000 44,000 14,800 14,200 9,67,000

`
1,90,000 1,35,000 42,000 40,000 8,000 4,15,000

9,67,000

4,15,000

(i) The Profit & Loss Account of B Ltd. showed a balance of `30,000 on 1st January, 2006 out of which a dividend of 10% was paid on as at august. The dividend was credited by A Ltd. to its profit & loss account. Profit may be assumed to have accrued evenly throughout the year. (ii) the Plant & Machinery of B Ltd. which stood at `1,50,000 on 1st January, 2006 was considered as worth `1,80,000 on the date of acquisition by A Ltd. Plant & Machinery is depreciated at 10%. Prepare the consolidated balance sheet of A Ltd. & its subsidiary as at 31st December, 2006. 22) Following are the balance sheets of H Ltd., & its subsidiary S Ltd. as at 31 st December 2003. Liabilities H. Ltd. S. Ltd. Assets H. Ltd. S. Ltd.

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Equity Shares of 10 each General Reserve (1-4-03) P & L Balance Bills payable Creditors 5,00,000 1,00,000 1,40,000 80,000

`
2,00,000 60,000 90,000 40,000 50,000 Goodwill Land & Building Plant & Machinery Stock Debtors 1,500 shares in S. Ltd. at cost Cash at Bank

`
40,000 2,00,000 1,60,000 1,00,000 20,000 2,40,000 60,000 8,20,000

`
30,000 1,30,000 90,000 90,000 75,000 25,000 4,40,000

8,20,000

4,40,000

Profit & Loss account of S. Ltd. showed a balance of `50,000 on 1st January, 2003. A dividend of 15% was paid in October, 2003 for the year 2002. This dividend was credited to profit & loss account by h. Ltd., which company got the bills discounted. Included in the creditors of S Ltd. are ` 20,000 for goods supplied by H Ltd. Included in stock of S Ltd. are goods to the value of `6,000 which were supplied by H Ltd. at a profit of 33% on cost. In arriving at the value of the S Ltd.s shares the plant & machinery which then stood in the book sat `1,00,000 as revalued at `1,50,000 The new value was not incorporated in the books. No changes in these assets have been made since that date. Prepare a consolidated Balance sheet f H. Ltd. & S. Ltd. Show workings in detail. (Oct. 97, adapted) 23) The balance sheets of H Ltd. & S. Ltd. as at 31st March, 2003 are as follows: Liabilities H. Ltd. S. Ltd. Assets H. Ltd. S. Ltd.

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Equity Shares of `10 each General Reserve (1-4-02) P & L Balance Creditors 4,00,000 2,80,000 1,70,000 70,000

`
1,00,000 34,000 42,000 35,000 Plant & Machinery Furniture Investment in S Ltd. (8,000 shares on 1-72002) Stock Sundry Debtors Cash at Bank

`
4,80,000 15,000 2,00,000

`
90,000 27,000 --

95,000 60,000 70,000

42,000 32,000 20,000

9,20,000 2,11,000 9,20,000 2,11,000 The following additional information is also given as under: (1) Stock of H Ltd. includes 20% of the stock purchased from S ltd. which charges 25% extra on its cost for determining sale price. (2) Creditors of H Ltd. includes `10,000 on account of purchases from S Ltd. which are equivalent to 4 months credit. (3) Profit & Loss Account of H Ltd. includes dividend @ 10% for the year 2001-02 received from S ltd. which declared & paid it in August 2002. (4) Balance in S ltd.s profit & Loss A/c on 1-04-02 was `27,000 from which the dividend of 10% & `1,000 as tax on distributed profit was paid in August 2002. (5) Profits during the year 2002-03 have been uniformly earned. Prepare a consolidated Balance Sheet of H Ltd. & its subsidiary S Ltd. as at 31 st March 2003. (Oct. 03 adapted) 24) The following are the Balance Sheets of H. Ltd. & S. Ltd. as on 31 st December, 2003. Liabilities H. Ltd. S. Ltd. Assets H. Ltd. S. Ltd.

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Share Capital: Shares of `100 each Reserves & Surplus: Profit & Loss A/c General Reserve Current Liabilities 10,00,000

`
5,00,000 Fixed assets Investments in S Ltd. Current assets

`
4,80,000 5,00,000 7,20,000

`
2,50,000 7,50,000

1,60,000 1,50,000 1,00,000 1,50,000 4,40,000 2,00,000 17,00,000 10,00,000

17,00,000

10,00,000

The following further information is furnished: (1) H. Ltd. acquired 3,000 shares in s. Ltd. on 1st April 2003. The reserves & surplus position of S Ltd. as on 1st January, 2003 was as under: (a) General Reserve `2,50,000 (b) Profit & Loss Account Balance `1,20,000 st (2) On 1 July, 2003 S Ltd. issued 1 share for every 4 shares held, as bonus share at a face value of `100 per share. No entry has been made in the books of H Ltd. for the receipt of these bonus shares. (3) On 30th June, 2003 S. Ltd. declared a dividend out of its pre-acquisition profits, of 25% on its then capital; H Ltd. credited the dividend to its Profit & Loss account. (4) H. Ltd. owed S ;ltd. `50,000 for purchase of stock from S ltd. The entire stock is held by H ltd. on 31st December 2003. S ltd. made a profit of 25% on cost. (5) H. Ltd. transferred a machinery to S Ltd. for `1,00,000. The book value of the machinery to H Ltd. was `80,000. Prepare a consolidated Balance Sheet as on 31st December 2003. 25) The balance sheets of H Ltd. & S Ltd. as on 31-03-2001 are as follows: Liabilities H. Ltd. S. Ltd. Assets (Oct. 2000, adapted) H. Ltd. S. Ltd.

`
Equity Share Capital (fully paid shares of `100 each) 15% Preference Share Capital General Reserve as on 104-2000 Profit & loss A/c Bills payable Creditors 9,00,000

`
4,00,000 Goodwill Land & Building Plant & Machinery Investment in S Ltd. (3,000 Equity shares purchased in S Ltd. on 30-9-2000) Stock Sundry Debtors Cash at Bank Preliminary Expenses

`
70,000 6,00,000 3,30,000

`
60,000 2,60,000 1,80,000

3,00,000 2,00,000 2,80,000 1,60,000

40,000 1,20,000 1,80,000 40,000 1,00,000

18,40,000 8,80,000 The following information also given to you: (1) 15% dividend on both types of shares was paid by S ltd. in October, 2000 for the year ended 31 st March, 2000. Tax on distributed Profits @ 10% was also paid in the same month. H. Ltd. credited the dividend received to its Profit & Loss Account. (2) S Ltd.s Plant & Machinery account showed a balance of `2,00,000 on 1st April, 2000. At the time of purchase of shares in S Ltd., H. Ltd. revalued S Ltd.s Plant & Machinery upward by `1,00,000 which is not recorded. (3) There was a bonus issue of equity shares amounting to `40,000 out of pre-acquisition profits by S Ltd. which has not been recorded in the books of account as yet. (4) Credit balance of Profit & Loss a/c on 1st April, 2000 was `1,06,600 of S Ltd. (5) Included in creditors of S ltd. are `40,000 for goods supplied by H Ltd. also includes in S Ltd.s stock are goods of `16,000 which were supplied by H Ltd. as a profit of 25% on sales.

4,80,000 2,00,000 40,000 1,20,000 18,40,000

1,80,000 1,50,000 40,000 10,000 8,80,000

Prepare a Consolidated Balance Sheet of H Ltd. & its subsidiary S Ltd. as on 31-03-2001 giving working notes. (Mar. 03, adapted) 26) Sun Ltd. acquired 34,000 shares in Moon Ltd. on 1-06-2000 for `5,20,000 & at that time the accumulated Reserves & Profits amounted to `1,40,000. The following are the Balance Sheets of Sun Ltd. & Moon Ltd. as on 31 st March, 2004. Liabilities Sun. Moon. Assets Sun. Ltd. Ltd. Ltd.

Moon. Ltd.

`
Share Capital: Shares of 10 each Reserves & Surplus: Profit & Loss A/c General Reserve Current Liabilities
st

`
6,11,000 5,20,000 4,40,000

`
3,74,000 --3,80,000

Fixed assets 10,00,000 4,00,000 34,000 shares in Moon Ltd. at cost 2,40,000 1,80,000 Current assets 1,40,000 60,000 1,91,000 1,14,000 15,71,000 7,54,000

15,71,000

7,54,000

On 31 March, 2004 Sun Ltd. disposed of 2,000 shares for `40,000. After taking into account this sale transaction, prepare consolidated balance sheet as at 31-32004 along with all workings & schedules. (Mar. 04, adapted) 27) From the following Balance Sheets of H ltd. & its subsidiary S Ltd. as at 31 st March, 2009 & the additional information provided thereafter, prepare a consolidated balance sheet of the two companies as at that date. Liabilities H. Ltd. S. Ltd. Assets H. Ltd. S. Ltd.

`
Share Capital: Shares of 10 each fully paid Reserves & Surplus: Profit & Loss A/c General Reserve Current Liabilities

`
11,62,000 1,42,000 3,86,000 -

`
1,80,000 1,24,000 5,000

Fixed assets 70% Shares of S ltd. at 10,00,000 2,00,000 cost Current assets 1,50,000 40,000 Preliminary Expenses 3,10,000 2,30,000 69,000 16,90,000 3,09,000 H Ltd. acquired the shares of 31st December, 2008. On 31st March 2009 S Ltd. decided to revalue its Fixed Assets at `2,00,000.

16,90,000

3,09,000

On 1st April 2008 S Ltd.s profit & Loss Account showed a debit balance of `8,000. (Oct. 2009, adapted)