Accounting

Q-9 120 Exe Ltd. acquires 70% of equity shares of Zed Ltd. as on 31st March, 2017 at a cost of Rs. 70 lakhs. The following information is available from the balance sheet of Zed Ltd. as on 31st March, 2017: Rs.in lakhs Fixed Assets Investments 55 Current Assets 70 Loans & Advances 15 15% Debentures 90 Current Liabilities 50 The following revaluations have been agreed upon (not included in the above figures): Fixed Assets Up by 20% Investments Down by 10% Zed Ltd. declared and paid dividend @ 20% on its equity shares as on 31st March, 2017. Exe Ltd. purchased the shares of Zed Ltd. @ Rs.20 per share. Calculate the amount of goodwill/capital reserve on acquisition of shares of Zed Ltd. S