3. Balance Sheet of Small Ltd. as on 31st March, 2018 was as under: I. Equity...
Fantastic news! We've Found the answer you've been seeking!
Question:
Transcribed Image Text:
3. Balance Sheet of Small Ltd. as on 31st March, 2018 was as under: I. Equity and Liabilities (1) Shareholder's Funds (a) Share Capital : Equity Shares of Rs. 100 each (b) Reserves & Surplus (i) General Reserve (ii) Surplus A/c in lakhs Balance b/d 0.70 Profit for the year 0.60 (2) Current Liabilities. Trade Creditors Total II. Assets (1) Non-current Assets (a) Fixed Assets in lakhs (i) Land & Building (ii) Machinery 3.50 Less Depreciation for the year 0.50 (b) Investment: Shares of Small Ltd. at Cost (2) Current Assets (a) Debtors (b) Cash at Bank Balance Total in lakhs 6.00 3.00 1.30 1.20 11.50 4.00 3.00 2.00 1.50 1.00 11.50 Big Ltd purchased 4000 Equity shares of Rs. 100 each on 1st October, 2017 on which date it was found that Land and Buildings were undervalued by Rs. 1 lakh and Machinery was worth only Rs. 2.75 lakhs. In preparing the Consolidated Balance Sheet of holding company, it was decided to adopt proper values of Assets. On the above information given: Ascertain (a) Capital Profits; (b) Revenue Profits; and (c) Minority Interest. 3. Balance Sheet of Small Ltd. as on 31st March, 2018 was as under: I. Equity and Liabilities (1) Shareholder's Funds (a) Share Capital : Equity Shares of Rs. 100 each (b) Reserves & Surplus (i) General Reserve (ii) Surplus A/c in lakhs Balance b/d 0.70 Profit for the year 0.60 (2) Current Liabilities. Trade Creditors Total II. Assets (1) Non-current Assets (a) Fixed Assets in lakhs (i) Land & Building (ii) Machinery 3.50 Less Depreciation for the year 0.50 (b) Investment: Shares of Small Ltd. at Cost (2) Current Assets (a) Debtors (b) Cash at Bank Balance Total in lakhs 6.00 3.00 1.30 1.20 11.50 4.00 3.00 2.00 1.50 1.00 11.50 Big Ltd purchased 4000 Equity shares of Rs. 100 each on 1st October, 2017 on which date it was found that Land and Buildings were undervalued by Rs. 1 lakh and Machinery was worth only Rs. 2.75 lakhs. In preparing the Consolidated Balance Sheet of holding company, it was decided to adopt proper values of Assets. On the above information given: Ascertain (a) Capital Profits; (b) Revenue Profits; and (c) Minority Interest.
Expert Answer:
Related Book For
Financial Accounting and Reporting
ISBN: 978-1292162409
18th edition
Authors: Barry Elliott, Jamie Elliott
Posted Date:
Students also viewed these accounting questions
-
The summarized statements for the year ended 31 December 2007 for Mat, Rug and P entities are as follows: Statements of comprehensive income for the year ended 31 December 2007 The following...
-
The following financial statements for Blackstone plc are a slightly simplified set of published accounts. Blackstone plc is an engineering business that developed a new range of products in 2007....
-
The financial statements of JJ Ltd and KK Ltd for the year to 30 June 2018 are shown below: Statements of comprehensive income for the year to 30 June 2018. Statements of financial position as at 30...
-
Jason is unhappy with the performance of his mutual fund. He sells his shares in the current fund and repurchases shares in a similar fund with the same firm. This transaction may not be a taxable...
-
Capricorn, Inc., is planning to go public by offering its common stock, which previously had been owned by only three shareholders. The company intends to limit the number of purchasers to...
-
Suppose that f : [a, b] R is continuous and increasing. Prove that sup f(E) = f (sup E) for every nonempty set E [a, b].
-
Evaluate an investment using all four methods (Learning Objectives 2, 4) Water World is considering purchasing a water park in San Antonio, Texas, for $1,850,000. The new facility will generate...
-
On January 1, 2017, the dental partnership of Angela, Diaz, and Krause was formed when the partners contributed $30,000, $58,000, and $60,000, respectively. Over the next three years, the business...
-
Five years ago, you purchase a house of $500,000. You borrow a mortgage with 80% of LTV(loan to value ratio), monthly payments and the interest rate of 5% for 30 years. You have found a new lender...
-
Combustion in a diesel engine may be modeled as a constant-pressure heat addition process with air in the cylinder before and after combustion. Consider a diesel engine with cylinder conditions of...
-
Applying Scripture: 1 Samuel 16:7 Let's take a moment to reflect on a timeless scripture - 1 Samuel 16:7: " The Lord does not look at the things people look at. People look at the outward appearance,...
-
Give me an explanation regarding Laws and Regulations in an Audit(THE ADVANCED AUDIT & ASSURANCE) .
-
Explain Money Laundering. What are the contents of anti ML program?
-
What is the Code of Ethics for Professional Accountants? Write a detailed essay discussing all the aspects regarding the topic. Explain with examples.
-
What is fraud? What are the types of fraud? What are the Responsibilities of External Auditors and Management in Relation to the Detection of Fraud? What are Overall responses to address the assessed...
-
What is Professional Liability? How can auditor restrict professional liability? What kinds of Professional Liabilities are faced by Accountants?
-
The reliability of selection decisions is the degree to which they are worth the time and money to carry them out. True False
-
What are some of the various ways to implement an awareness program?
-
James Bright has just taken up the position of managing director following the unsatisfactory achievements of the previous incumbent. James arrives as the accounts for the previous year are being...
-
Wonder Kid Enterprises Company has produced the following results over the last three years: Management has just issued its annual report for 20XZ and a fair reading of their commentary is that the...
-
Geoworld Enterprises plc has the following information extracted from its statement of income and payroll systems:...
-
Comprehensive Problem: Reviewing the Accounting Cycle} Fodor Freight Service provides delivery of merchandise to retail grocery stores in northern Manitoba. At the beginning of 2018 , the following...
-
Cash-Basis and Accrual-Basis Income} Martin Sharp, who repairs lawn mowers, collects cash from his customers when the repair services are completed. He maintains an inventory of repair parts that are...
-
Preparation of Adjusting Entries} Osaga Beach Resort operates a resort complex that specializes in hosting small business and professional meetings. Osaga Beach closes its fiscal year on January 31,...
Study smarter with the SolutionInn App