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Test - Consolidated Financial Statements

H Ltd owns 75% of shares in S Ltd. The document provides balance sheets for H Ltd and S Ltd as of March 31, 2019 and additional financial information. It asks to prepare a consolidated balance sheet combining the two companies as of that date. It also provides balance sheets for R Ltd and its 40% owned subsidiary S Ltd as of December 31, 2013, along with additional financial details between the two companies. It asks to prepare a consolidated balance sheet for R Ltd and S Ltd as of that date.

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Sibika Gadia
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193 views1 page

Test - Consolidated Financial Statements

H Ltd owns 75% of shares in S Ltd. The document provides balance sheets for H Ltd and S Ltd as of March 31, 2019 and additional financial information. It asks to prepare a consolidated balance sheet combining the two companies as of that date. It also provides balance sheets for R Ltd and its 40% owned subsidiary S Ltd as of December 31, 2013, along with additional financial details between the two companies. It asks to prepare a consolidated balance sheet for R Ltd and S Ltd as of that date.

Uploaded by

Sibika Gadia
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
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Download as DOCX, PDF, TXT or read online on Scribd
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Problems on Consolidated Financial Statements

1. From the Balance Sheets and Information given below, prepare consolidated balance sheet
as on 31.03.2019

Liabilities H Ltd S Ltd Assets H Ltd S Ltd


Equity share capital 8,00,000 2,00,000 Fixed assets 5,50,000 1,00,000
General reserves 1,50,000 70,000 75% shares in S Ltd 2,80,000
(at cost)

Profit and loss account 90,000 55,000 Stock 1,05,000 1,77,000


Creditors 1,20,000 80,000 Other current 2,25,000 1,28,000
assets
11,60,000 4,05,000 11,60,000 4,05,000
Additional information
1. H Ltd acquired shares on 31.07.2018
2. S Ltd earned a profit of Rs.45,000 for the year ended 31.03.2019
3. On 1.1.2019 S Ltd sold to H ltd goods costing Rs. 15,000 for Rs.20,000
4. On 31.03.2019 half of the above goods were lying unsold in the godowns of H Ltd
2 .R Limited acquired 40,000 equity shares of Rs. 10/ each in S Limited on 1/1/2013. The
following are the Balance sheets of two companies as on 31.12.2013.

Liabilities R Ltd S Ltd Assets R Ltd S Ltd


Share capital 10,00,000 5,00,000 Land & Buildings 2,00,000 1,50,000
Shares of Rs. 10
each
Reserves (1/1/13) 1,00,000 1,00,000 Plant and Machinery 3,00,000 3,00,000
Profit and loss a/c 50,000 30,000 Stock 75,000 50,000
(1/1/13)
Profit for the year 60,000 40,000 Sundry Debtors 50,000 60,000
Sundry creditors 70,000 50,000 Investments 5,00,000
Shares of S Ltd
Bills payable 10,000 5,000 Bills receivable 10,000 5,000
Cash and Bank 1,55,000 1,60,000
12,90,000 7,25,000 12,90,000 7,25,000

1. Bills receivable of R Ltd includes Rs.3,000/- accepted by S Ltd


2. Sundry Debtors of R Ltd include Rs. 10,000 due from S Ltd
3. Stock of S Ltd include goods purchased from R Ltd for Rs. 30,000 which were invoiced by
R Ltd at a profit of 25% on the cost price
Prepare a consolidated Balance sheet of R Ltd and its subsidiary S Ltd as on 31.12.2013

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