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h ltd acquired 1 28 000 equity shares of rs 10 each in s ltd on 1 october 2010 for 2 608545

H Ltd. acquired 1,28,000 equity shares of Rs.10 each in S Ltd. on 1 October 2010 for 24,00,000. The balance sheets of the two companies as at 31 March 2011 were as follows:

Liabilities:

H Ltd.Rs.

S Ltd.Rs.

Equity Shares of 100

40,00,000

16,00,000

Each Fully Paid up

General Reserve

19,20,000

8,00,000

(1 April 2010)

Profit & Loss A/c

4,80,000

7,20,000

Unclaimed Dividend

8,000

Bills Payable

1,20,000

Sundry Creditors

16,00,000

3,52,000

80,00,000

36,00,000

Assets:

H Ltd.Rs.

S Ltd.Rs.

Land and Building

16,00,000

17,60,000

Plant & Machinery

24,00,000

12,00,000

Investments

32,00,000

Stock

2,00,000

1,20,000

Debtors

1,60,000

2,00,000

Bills Receivable

40,00080,000

80,000

Bank Balance

4,00,000

1,60,000

Preliminary Expenses

80,000

80,00,000

36,00,000

NOTE: Contingent liability for bills discounted Rs.80,000.

Additional information:

  1. On 1 April 2010, the P&L A/c of S Ltd. showed a credit balance of Rs.2,80,000 out of which a dividend of 10% was paid on 1 November 2010. The dividend was credited by H Ltd. to its P&L A/c. Ignore corporate dividend tax.
  2. (Creditors of S Ltd. include an amount of Rsd.1,20,000 for purchases from H Ltd. The goods are still unsold on 31 March 2011. H Ltd. sells goods at cost plus 20%.
  3. Bills payable of S Ltd. are all issued in favour of H Ltd. Of these bills, H Ltd. got discounted bills worth Rs.80,000.

Prepare consolidated balance sheet.

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