Assets Liabilities Rs. Rs. Share Capital: Equity Share Capital 3,00,00,000 Fixed Assets Reserves & Surplus Goodwill on Consolidation 37,92,000 General Reserve 30,00,000 Other Fixed Assets [1,50,00,000+1,44,70,000 2,89,70,000 -5,00,000 (Revaluation Loss) Profit and Loss Account 44,60,000 Current Assets Minority Interest 34,62,000 Sundry Debtors 125,00,000 + 18,00,000) 43,00,000 Current Liabilities Stock in Trade [40,00,000 + 20,00,000 60,00,000 Sundry Creditors [17,90,000 + 7,00,000) 24,90,000 Cash at Bank [2,00,000 + 2,00,000) 4,00,000 B/P[1,70,000 - 50,000 (Mutual Owings)] 1,20,000 B/R [1,20,000 - 50,000 (Mutual Owings)] 70,000 Total 4,35,32,000 Total 4,35,32,000 Contingent Liability for Bills Discounted Rs.60,000 Note: Fixed Assets have been reevalued for the purpose of Consolidation and the depreciation on the relation loss has been ignored as its specifically stated in the problem a 46 100 200 105 30 50 100 100 30 40 90 30 10 12 25 20 28 Illustration 17: Invt in PSC, Revaluation of Asset & Stock Reserve - Upstream & Downstream. GLtd. acquired control in S Ltd. a few years back when S Ltd. had Rs 25,000 in Reserve and Rs.14,000 (Cr.) in Profit & Loss Account. Plant Account (Book Value Rs.66,000) of S Ltd. was revalued at Rs.62,000 on the date of purchase. Equity Dividend of Rs.7 500 was received by G Ltd. out of pre-acquisition profit and the amount was correctly treated by G Ltd. Debenture Interest has been paid upto date. Following are the Balance Sheets of G Ltd. and S Ltd. as at 31st December (Rs.000's) - Liabilities G S Assets G s 6% Preference Share Capital (Rs.100) 50 Goodwill 50 Equity Share Capital (Rs.10) 500 100 Land & Buildings General Reserve 30 Plant & Machinery Profit & Loss Account 12 Stock in Trade 130 6% Debentures NIL 100 Sundry Debtors 90 50 Sundry Creditors 60 Bills Receivable Due to S Ltd. 10 NIL Due from G Ltd. NIL Bills Payable 25 Bank 27 Investments in S Ltd. - 300 Preference Shares NIL - 7.500 Equity Shares 85 - Debentures (Face Value Rs.30,000) 45 NIL Total 377 790 377 Additional Information 1. Cheque of Rs.2,000 sent by G Ltd., to S Ltd., was in transit. 2. Balance Sheet of S Ltd. was prepared before providing for 6 months dividend on Preference Shares, the first half being already paid. 3. Both the Companies have proposed Preference Dividend only, but no effect has been given in the accounts. 4. Stock of G includes Rs.6,000 stock purchased from S on which Smade 20% profit on cost. Stock of Sincludes Rs.10,000 purchased from G on which Gmade 10% profit on selling price. 5. Since acquisition, S Ltd. has written off 30% of the book value of plant as on date of acquisition by way of depreciation 6. Bills Receivable of S Ltd. are due from GLtd. Prepare Consolidated Balance Sheet as at 31st December NIL 790 Total