Q.3 X. ltd. Acquired 750shares in Y ltd. As at 1st July, 2014 The Balance sheets as on 31st December 2014 when account of both companies were prepared were as under. Balance sheet as on 31-12-2014 Liabilites X Ltd Share Capital 3,00,000 Y Ltd 1,00,000 (Equity shares of Rs.100 fully paid) Reserves and Surplus General Reserve 1st Jan.2014 1,00,000 70,000 Profit and Loss a/c 1,00,000 60,000 Current Liabilities Creditors Bills Payable Current Account: X Ltd. 80,000 40,000 50,000 20,000 20,000 Total 6,30,000 3,10,000 Fixed Assets: Land and building 205,000 125,000 Current Assets: Debtors 1,00,000 40,000 Stock in trade 1,00,000 80,000 Investment Bills Receivable 1,00,000 40,000 45,000 Cash at bank Current Account: Y Ltd. Total FURTHER: 60,000 20,000 25,000 6,30,000 3,10,000 a) Bills Receivable of X Ltd. Includes Rs. 10,000 accepted by Y Ltd. b) Debtors of X Ltd. Includes Rs. 20,000 accepted by Y Ltd. c) A Cheque of Rs. 5,000 sent by Y Ltd. on 20th December was not yet received by X Itd. till 31 December, 2014.. d) Profit and Loss account of Y ltd. Showed a Cr. Balance of Rs. 20,000 on 1st January,2014 ANS: B/S TOTAL: 7,90,000