Question 4
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
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
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
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
The city council wants the municipal engineer to evaluate three alternatives for supplementing the city water supply. The first alternative is to continue deep well pumping at an annual cost of $10,500. The second alternative is to install an 18" pipeline from a surface reservoir. First cost is $25,000 and annual pumping cost is $7000. The third alternative is to install a 24" pipeline from the reservoir at a first cost of $34,000 and annual pumping cost of $5000. Life of all alternatives is 20 years. For the second and third alternatives, salvage value is 10% of first cost. With interest at 8%, which alternative should the engineer recommend? Use present worth analysis.