the following are the profit and loss accounts of h ltd and s ltd for the year ended 674614
The following are the Profit and Loss Accounts of H Ltd. and S Ltd. for the year ended 31st March, 2011.
|
H Ltd. |
S Ltd. |
H Ltd. |
S Ltd. |
||
|
Rs |
Rs |
Rs |
Rs |
||
|
To Opening Stock |
1,00,000 |
— |
By Sales |
8,00,000 |
6,50,000 |
|
To Purchases |
5,00,000 |
4,00,000 |
By Closing Stock |
1,50,000 |
1,00,000 |
|
To Productive Wages |
1,50,000 |
1,00,000 |
|||
|
To Gross Profit c/d |
2,00,000 |
2,50,000 |
|||
|
9,50,000 |
7,50,000 |
9,50,000 |
7,50,000 |
||
|
To Sundry Expenses To Debenture Interest |
75,000 |
1,00,000 |
By Gross Profit b/d |
2,00,000 |
2,50,000 |
|
To Provision for |
— |
6,000 |
By Debenture |
||
|
Taxation |
60,000 |
70,000 |
Interest |
3,000 |
— |
|
To Profit c/d |
68,000 |
74,000 |
|||
|
2,03,000 |
2,50,000 |
2,03,000 |
2,50,000 |
||
|
To Preference Dividend |
— |
3,000 |
By Profit b/d |
68,000 |
74,000 |
|
To Proposed Dividend |
20,000 |
20,000 |
|||
|
To Tax on Distributed |
|||||
|
Profit @ 15%* |
3,000 |
3,450 |
|||
|
To Balance c/d |
45,000 |
47,550 |
|||
|
68,000 |
74,000 |
68,000 |
74,000 |
You are also given the following additional information:
(1) H Ltd. holds 1,500 equity shares of Rs.100 each in S Ltd. whose capital consists of 2,000 equity shares of Rs.100 each and 6% 500 cumulative preference shares of Rs.100 each. S Ltd. has also issued 6% Debentures of Rs.1,00,000 out of which H Ltd. holds Rs.50,000.
(2) The shares in S Ltd. were acquired by H Ltd. on 1st July, 2010 but the debentures were acquired on 1st April, 2010. S Ltd. was incorporated on 1st April, 2 010.
(3) During the year S Ltd. sold to H Ltd. goods costing Rs.50,000 at the selling price of Rs.75,000. One fourth of the goods manufactured remained unsold on 31st March, 2011. The goods were valued at cost to the holding company for closing stock purposes.
Prepare a consolidated profit and loss account.