Q.11 From the following balance sheet of H. Ltd. and its subsidiary S Ltd. drawn up at 31.12.2010. Prepare a consolidated Balance sheet as on that date having regard to the following i) Reserve and profit and loss account (cr.) of S. Ltd. stood at Rs. 50,000 and 30,000 respectively, on the date of acquisition of its 80% shares. Held by H Ltd. as on 1/01/2010 and ii) Machinery (Book value Rs. 2,00,000) and furniture (Book value Rs. 40,000) of S Ltd. were revalued at Rs.3,00,000 and Rs. 30,000 respectively for the purpose of fixing the price of its shares there was no purchase or sale of these assets since the date of acquisition. Liabilities Share capital Balance sheets of H Ltd. S Ltd. as at 31st December, 2010. Shares of Rs. 100 each Reserves and surplus: Reserves Profit & loss A/c Current liabilities Creditors H Ltd. Rs. S Ltd. Rs. 10,00,000 2,00,000 4,00,000 1,50,000 2,00,000 50,000 3,00,000 19,00,000 Assets H Ltd. Rs. 1,00,000 5,00,000 S Ltd.Rs. Fixed Assets: Machinery 6,00,000 1,80,000 Furniture 1,00,000 34,000 Other Assets (current) 8,80,000 2,86,000 Shares in S Ltd. 1600 at Rs. 200 each 3,20,000 19,00,000 5.00.000