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n20 Therefore, Capital reserve is Rs 23,250 Pre incorporation profits Less: Goodwill on business purchase Balance of Capital reserve 39,250 (16,000) 23.250 Q. 28. Balance Sheet of P Ltd. and Q Ltd. as at 30.06.2010 is given below (Rs. in 000's) P Q Liabilities P Q 5.000 300 200 2.400 140 200 1,000 1.000 4000 1.000 2,440 Liabilities Equity Share Capital (Rs.10) Securities Premium General Reserve Profit & Loss Account 8% Debentures Trade Creditors Outstanding Expenses 1.600 600 900 2.000 1,000 1 500 800 400 300 150 450 Goodwill Buildings Machinery Investment in Shares 1.92,000 Shares of Ltd Investments in Debentures in Ltd. Face Value Rs 4,00.000 In P Ltd. (Face Value R$ 200,000) Sundry Debtors Stock Cash and Bank Preliminary Expenses Outstanding Income Total 220 1.500 1.000 1.000 1.000 100 200 100 50 150 280 Total 10,200 6,290 10,200 6,290 1. When the shares were acquired, Q Ltd had Rs.2.2 Lakhs in General Reserve and Rs 1,00,000 in Securities Premium, Rs. 3,00,000 (Dr.) in Profit and Loss Account 2. Two years after the date of acquisition Bonus Shares at 1 to 1 were issued out of General Reserve 3. One year after the Bonus issue, Rights Shares were issued at 10% Premium at 1 for 5 held and P Ltd purchased all the shares offered to it 4. P Ltd. received Rs 1,92,000 dividend for the last year and Rs.96,000 interim dividend in the current year, i.e. 3 years after the Rights Issue. 5. For the current year 15% dividend(including Interim Dividend) has been proposed by Q Ltd 10% by P Ltd. but no effect has yet been given in the accounts 6. On the same day referred to in (5) above, Bonus Dividend has been declared at ito 2, but no effect has yet been given. 7. 50% of the shares originally purchased in Lid were paid for to the shareholders of Q Ltd. by 50,000 shares of P Ltd issued at 10% premium 8. Debenture Interest of both the Companies falls due on 30th June, but payments are made 2 or 3 days after Prepare Consolidated Balance Sheet as at 30.06.2010