Given below are the extracts from the Balance Sheets of AH Ltd and AS Ltd as...

 

Transcribed Image Text:

Given below are the extracts from the Balance Sheets of AH Ltd and AS Ltd as at 31 March, 2018: Particulars Equity Shares of Rs. 10 each 12% Pref. Shares of Rs. 10 each General Reserve Profit & Loss A/C. 12% Debentures Trade Creditors Bills payables Land & Building Plant & Machinery Shares in AS Ltd. 900, 12% Debentures in AS Ltd. Inventories Trade Debtors Bills Receivables Cash at Bank AH Ltd. (Rs.) 10.00,000 1,00,000 2.00.000 3,10.000 2.00.000 3,00,000 1.40.000 6,00,000 2,00,000 7,10,000 80,000 1,00,000 4.00.000 1,00.000 60,000 AS Ltd. (Rs.) 7,00,000 50,000 4.48,000 1,52.000 2,00,000 5,35,000 1,40,000 2.70,000 3,70,000 3,00,000 9.10,000 1,00,000 2.75.000 Note: Contingent liability in respect of Bills discounted by AH Ltd. Rs.50.000. Contingent liability in respect of Bills discounted by AS Ltd. Rs.25.000 of which Bills of Rs.5.000 were accepted by AH Ltd. Additional Information: AH Ltd. acquired 40,000 Equity Shares of AS Ltd. and 2,000. 12% Pref. Shares in AS Ltd, on 01.07.2017 at a cost of was Rs.6,80,000 and Rs. 30,000 respectively. The credit balance of Profit and Loss Account of AS Ltd. as on 01.04.2017 was Rs.2.00,000 and that of General Reserve on that date was Rs.6,00,000. On 30.09.2017 AS Ltd. declared dividend @ 20% on equity shares for the year 2016- 2017 AH Ltd. credited the receipt of dividend to its Profit and Loss Account. 1 On 01.01.2018, AS Ltd. issued 2 shares for every 5 shares held, as Bonus shares. No entry has been made in the books of AH Ltd. for the receipt of these Bonus shares. AH Ltd. purchased goods for Rs.3 lakhs from AS Ltd. which made a profit of 20% on cost. 80% of these goods were sold by AH Ltd. at a profit of 20% on cost till 31.03.2018. (e) On 01.01.2018, AH Ltd. sold to AS Ltd. a Machine costing Rs.2.40,000 at a profit o 25% on selling price. Depreciation at 10% p.a. was provided by AS Ltd. on this Machine. (f) (9) AH Ltd. owed AS Ltd. Rs. 2,90,000 but AS Ltd is owed Rs.3,00,000 by AH Ltd. The Land and Building of AS Ltd. which stood at Rs.3,00,000 on 01.04.2017, was considered as worth of Rs.6,92,500 on 01.07.2017, for which necessary adjustments are yet to be made. All the Bills Payables of AS Ltd. were drawn upon by AH Ltd. The management of AH Ltd. and AS Ltd. wish to recommend a dividend of 15% p.a. and 10% p.a respectively on equity shares for the year 2017-2018. 16 Required: Prepare the Consolidated Balance Sheet of AH Ltd. and its subsidiary, as at 31st March, 2018 (h) (1) Given below are the extracts from the Balance Sheets of AH Ltd and AS Ltd as at 31 March, 2018: Particulars Equity Shares of Rs. 10 each 12% Pref. Shares of Rs. 10 each General Reserve Profit & Loss A/C. 12% Debentures Trade Creditors Bills payables Land & Building Plant & Machinery Shares in AS Ltd. 900, 12% Debentures in AS Ltd. Inventories Trade Debtors Bills Receivables Cash at Bank AH Ltd. (Rs.) 10.00,000 1,00,000 2.00.000 3,10.000 2.00.000 3,00,000 1.40.000 6,00,000 2,00,000 7,10,000 80,000 1,00,000 4.00.000 1,00.000 60,000 AS Ltd. (Rs.) 7,00,000 50,000 4.48,000 1,52.000 2,00,000 5,35,000 1,40,000 2.70,000 3,70,000 3,00,000 9.10,000 1,00,000 2.75.000 Note: Contingent liability in respect of Bills discounted by AH Ltd. Rs.50.000. Contingent liability in respect of Bills discounted by AS Ltd. Rs.25.000 of which Bills of Rs.5.000 were accepted by AH Ltd. Additional Information: AH Ltd. acquired 40,000 Equity Shares of AS Ltd. and 2,000. 12% Pref. Shares in AS Ltd, on 01.07.2017 at a cost of was Rs.6,80,000 and Rs. 30,000 respectively. The credit balance of Profit and Loss Account of AS Ltd. as on 01.04.2017 was Rs.2.00,000 and that of General Reserve on that date was Rs.6,00,000. On 30.09.2017 AS Ltd. declared dividend @ 20% on equity shares for the year 2016- 2017 AH Ltd. credited the receipt of dividend to its Profit and Loss Account. 1 On 01.01.2018, AS Ltd. issued 2 shares for every 5 shares held, as Bonus shares. No entry has been made in the books of AH Ltd. for the receipt of these Bonus shares. AH Ltd. purchased goods for Rs.3 lakhs from AS Ltd. which made a profit of 20% on cost. 80% of these goods were sold by AH Ltd. at a profit of 20% on cost till 31.03.2018. (e) On 01.01.2018, AH Ltd. sold to AS Ltd. a Machine costing Rs.2.40,000 at a profit o 25% on selling price. Depreciation at 10% p.a. was provided by AS Ltd. on this Machine. (f) (9) AH Ltd. owed AS Ltd. Rs. 2,90,000 but AS Ltd is owed Rs.3,00,000 by AH Ltd. The Land and Building of AS Ltd. which stood at Rs.3,00,000 on 01.04.2017, was considered as worth of Rs.6,92,500 on 01.07.2017, for which necessary adjustments are yet to be made. All the Bills Payables of AS Ltd. were drawn upon by AH Ltd. The management of AH Ltd. and AS Ltd. wish to recommend a dividend of 15% p.a. and 10% p.a respectively on equity shares for the year 2017-2018. 16 Required: Prepare the Consolidated Balance Sheet of AH Ltd. and its subsidiary, as at 31st March, 2018 (h) (1)

Answer rating: 100% (QA)

Consolidated Balance Sheet of AH Ltd and its subsidiary as at 31 March 2018 Liabilities Particulars AH Ltd AS Ltd Consolidated Equity Shares Rs 10 eac... View the full answer