Prepare a consolidated balance sheet as on 31st March, 2011. Workings will be part of your answer.


Question Description:

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Balance Sheet of Harry Co. Ltd. as on 31st March, 2011 Liabilities Rs Assets Rs Capital 1,00,000 Goodwill 20,000 General Reserve 34,000 Land and Buildings 76,000 Profit and Loss A/c 11,100 Investments* 28,800 Bills Payable 41,000 Stock 52,000 Sundry Creditors 63,900 Sundry Debtors and Advances (including loan to Suman Ltd.: Rs.1000) 58,000 Cash and bank 15,200 2,50,000 2,50,000 The investment consists of 2,400 shares of Rs.10 each fully paid in its subsidiary Suman Ltd. which was acquired on 1st July, 2010. Balance Sheet of Suman Ltd. as on 31st March, 2011 Liabilities Rs Assets Rs Capital (d) 30,000 Goodwill 4,400 General Reserve 5,000 Plant and Machinery (a) 29,000 Profit and Loss A/c (e) 4,400 Stock 6,000 Loan 21,000 Sundry Debtors 12,500 Sundry Creditors 28,400 Bills Receivable (b) 30,000 Cash and Bank (c) 6,900 88,000 88,000 (a) On 1st April, 2010 the plant and machinery were revalued at Rs.32,000 which should be taken in the consolidated balance sheet. Ignore depreciation. There were no additions or deletions to plant during the year. (b) Total bills receivable were Rs.41,000 (all accepted by Harry Co. Ltd.) of which bills of Rs.11,000 had been discounted with the banker and yet to be matured. (c) Cash and bank balances were arrived at after sending a cheque for Rs.1,000 to Harry Co. Ltd., on account of repayment of loan. (d) Capital account of Suman Ltd. consists of 3,000 ordinary shares of Rs.10 each. (e) Balances as on 1st April, 2010 Profit and Loss A/c Rs.1,200 General Reserve Rs.4,000 Prepare a consolidated balance sheet as on 31st March, 2011. Workings will be part of your answer.

Answer

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