- Q 7 A Ltd Acquired 16 000 Equity Shares Of Rs 10 Each In B Ltd On 1 10 2002 For Rs 3 00 000 The Balance Sheets Of Tw 1 (62.18 KiB) Viewed 50 times
Q.7 A Ltd. acquired 16,000 equity shares of Rs.10 each in B Ltd. on 1-10-2002 for Rs.3. 00,000. The balance sheets of two companies as on 31-03-2003 were as follows: Liabilities A Ltd. Rs. BLtd. Rs. Equity share capital of Rs-10 each 5,00,000 200,000 Reserves and Surplus General Reserve 2,40,000 1,00,000 Profit & Loss A/C 60,000 90,000 Current Liabilities Creditors 2,00,000 44,000 Bills Payable to A Ltd. 15,000 Unclaimed Dividend 1,000 10,10,000 A Ltd. Rs. 4,50,000 BLtd. Rs. 2,00,000 3,00,000 2,20,000 1,50,000 Total Assets Tangible Assets: Land & building Plant & Machinery Current Assets: Investments Stock-in-trade Debtors Bills Receivable Cash at Bank Preliminary Expenses 4,00,000 25,000 20,000 5,000 50,000 15,000 25,000 10,000 20,000 10,000 4,50,000 Total 10,10,000 Note: Contingent liability for Bills discounted Rs.10,000 Additional information: i. On 1-4-2002, the profit and loss account of Bitd. Showed a credit balance of Rs.35,000 ii. 10% Dividend was paid by Bltd @10% was credited by Alt. to its Profit and loss account. Creditors of Altd include an amount of Rs.15,000 for purchases from Bitd. Profit charged by the said company was cost plus 20%. The goods are still unsold. iv. Bills payable of BItd are all issued in favor of Altd of which the latter company got discounted Rs.10,000 bill receivable with its banker. Prepare a consolidated Balance Sheet.