Q.9 The following are the Balance Sheets of Anil Ltd. and Sunil Ltd. as on 31st...

 

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Q.9 The following are the Balance Sheets of Anil Ltd. and Sunil Ltd. as on 31st March, 2010: Balance Sheets as on 31st March, 2010 Anil Ltd. Rs. 5,00,000 Liabilities Share capital of Rs. 100 each Reserves and surplus General Reserve Profit & Loss A/c Current liabilities Bills Payable Creditors Assets Fixed Assets Land and Building Plant and Machinery Investment in 2,700 shares in Sunil Ltd. at cost Current Assets Stock Debtors Bills Receivable 40,000 70,000 50,000 1.40.000 8,00,000 Anil Ltd. Rs. 2,00,000 1,50,000 2,97,000 40,000 50,000 63.000 8,00,000 Sunil Ltd. Rs. 3,00,000 10,000 5,000 25,000 60.000 4,00,000 Sunil Ltd. Rs. 1,00,000 2,00,000 30,000 60,000 10.000 4,00,000 Additional Information: (1) On the date of purchase of shares there was no balance in General Reserve and Profit & Loss A/c showed debit balance of Rs. 10,000 in the books of Sunil Ltd. (2) Debtors of Sunil Ltd. includes Rs. 40,000 due from Anil Ltd. (3) Bills payable of Sunil Ltd. includes Rs. 18,000 issued in favour of Anil Ltd. of which discounted bills Rs. 3,000 of them. (4) Stock of Sunil Ltd. include Rs. 4,000 being purchased from Anil Ltd. on which latter company made profit of 33 1/3 % on cost price. (5) On the date of acquisition of shares, Anil Ltd. Revalued plant & machinery of Sunil Ltd. Rs. 1,90,000 only. Show detail working and prepare consolidated Balance Sheet. Q.9 The following are the Balance Sheets of Anil Ltd. and Sunil Ltd. as on 31st March, 2010: Balance Sheets as on 31st March, 2010 Anil Ltd. Rs. 5,00,000 Liabilities Share capital of Rs. 100 each Reserves and surplus General Reserve Profit & Loss A/c Current liabilities Bills Payable Creditors Assets Fixed Assets Land and Building Plant and Machinery Investment in 2,700 shares in Sunil Ltd. at cost Current Assets Stock Debtors Bills Receivable 40,000 70,000 50,000 1.40.000 8,00,000 Anil Ltd. Rs. 2,00,000 1,50,000 2,97,000 40,000 50,000 63.000 8,00,000 Sunil Ltd. Rs. 3,00,000 10,000 5,000 25,000 60.000 4,00,000 Sunil Ltd. Rs. 1,00,000 2,00,000 30,000 60,000 10.000 4,00,000 Additional Information: (1) On the date of purchase of shares there was no balance in General Reserve and Profit & Loss A/c showed debit balance of Rs. 10,000 in the books of Sunil Ltd. (2) Debtors of Sunil Ltd. includes Rs. 40,000 due from Anil Ltd. (3) Bills payable of Sunil Ltd. includes Rs. 18,000 issued in favour of Anil Ltd. of which discounted bills Rs. 3,000 of them. (4) Stock of Sunil Ltd. include Rs. 4,000 being purchased from Anil Ltd. on which latter company made profit of 33 1/3 % on cost price. (5) On the date of acquisition of shares, Anil Ltd. Revalued plant & machinery of Sunil Ltd. Rs. 1,90,000 only. Show detail working and prepare consolidated Balance Sheet.

Answer rating: 100% (QA)

Step 1 Elimination of Intercompany Transactions and Adjustments a Eliminate the intercompany debt and credit balances Anil Ltd owes Sunil Ltd Rs 40000 ... View the full answer