a42 2. Analysis of Reserves and supus of Y Ltd. (a) Securities Premium Balance as per Balance Sheet Rs. 3,00,000 Balance on date of acquisition Acquisition to Consolidation Rs. 3,00,000 (balancing figure) Rs.NIL Capital Profit Securities Premium (b) General Reserve Balance as per Balance Sheet Rs.7,00,000 Balance on date of acquisition Acquisition to Consolidation Rs.1,00,000 (balancing figure) Rs.6,00,000 Capital Profit Revenue Reserve (General Reserve) (c) Profit and Loss Account Balance as per Balance Sheet Rs.12,00,000 Balance on date of acquisition Acquisition to Consolidation Rs.4,00,000 (balancing figure) Rs.8,00,000 Capital Profit Revenue Profit (P&L A/C) 3. Analysis of Net Worth of Y Ltd. Total Share of Particulars Minority X Ltd. Interest 100% 75% 25% (a) Equity Share Capital 20,00,000 15,00,000 5,00,000 (b) Capital Profits Securities Premium 3,00,000 6,00,000 2,00,000 4,50,000 1,00,000 1,50,000 General Reserve Profit & Loss Account 4,00,000 6,00,000 2,00,000 Total 8,00,000 (c) Revenue Reserves General Reserve 6,00,000 (d) Revenue Profits Profit & Loss A/C 8,00,000 Minority Interest 10,50,000 Illustration 7: Minority Interest - Investment in Preference Capital J Ltd acquired 60% of the Equity Shares and 35% of Preference Shares of KLtd. The Balance Sheet of K Ltd. as on 31 December is as under Liabilities Rs. Assets Rs. Share Capital: Equity Capital (Rs.100) 3,75,000 Fixed Assets: (Net Block) 5,50,000 Pref. Capital (Rs.100) 2,50,000 Current Assets: Stock In Trade 1,70,000 Reserves: Capital Reserve 37,500 Debtors 1,87,500 General Reserve 1,70,000 Other Current Assets 67,500 Profit and Loss Account 42,500 Miscellaneous Expenditure: Current Liabs: Creditors 1,25,000 Preliminary Expenses 25,000 Total 10,00,000 Total 10,00,000 When ) Ltd. acquired shares, balances in Reserves of K Ltd. were as under - (a) Capital Reserve Rs.20,000; (b) General Reserve Rs.45,000; (e) Profit and Loss Account Rs.67,500; (d) Preliminary Expenses Rs. 25,000. Determine Minority Interest for the purpose of Consolidation