Balance as per Balance Sheet Less: Proposed Dividend Add: Expenses incurred on behalf of M Ltd. by L Ltd. Less: Dividend out of Pre acquisition Profits (2007-08) Add: Share of Proposed Dividend for FY 2008-09 Adjusted Balance Less: Share of Revenue Loss of M Ltd. Consolidated Balance (Rs. 80,000 x 10%) (Rs 250 x12 months) (Rs. 8,000 x 50%) (WN4) 22,000 (8,000) 3,000 (4,000) 6,750 19,750 (2,680) 17,070 n23 7. Consolidation Balance Sheet of L Ltd. and its subsidiary M Ltd. as at 31.03.2009 Rs. 1,34,000 Rs. Assets 80,000 Other Assets Current Assets: 17,070 Cash (7,000+4,000] 3,530 25,400 Liabilities Share Capital: Equity Share Capital Reserves & Surplus Profit and Loss Account Capital Reserve on Consolidation Minority Interest Current Liabilities: Sundry Creditors (3,000+8,000] Proposed Dividend (shareholders of L Ltd.) Total 11,000 11,000 8,000 1,45,000 Total 1,45,000 Q. 31. Following are the Balance Sheets of M Ltd. and N Ltd. as at 31.03.2009 - Liabilities M Ltd. N Ltd. Assets M Ltd. N Ltd Equity Share Capital of Rs.100 each fully paid General Reserve Prof it & Loss Account Sundry Creditors Bills Payable 6,00,000 1,00,000 Land & Building Machinery 50,000 30,000 7000 Shares in N 80,000 40,000 Stock in Trade 1,00,000 40,000 Debtors 10,000 15,000 Bills Receivable Cash at Bank 2,00,000 1,00,000 2,80,000 50,000 1,00,000 70,000 40,000 1,50,000 20,000 10,000 30,000 15,000 Total 8,40,000 2,25,000 Total 8,40,000 2,25,000 Prepare Consolidated Balance Sheet as at 31st March, 2009 from the following additional Information - 1. All the Bills Receivable of M Ltd. including those discounted were accepted by N Ltd. 2. When M Ltd. had acquired 600 Shares in N Ltd., the latter had Rs. 20,000 in General Reserve and Rs. 5,000 Credit Balance in Profit and Loss Account