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III. HOLDING COMPANY

Problem 1] The following are the Balance Sheets of two companies as at 31st March, 2011.

Liabilities AB Ltd. CD Ltd. Assets AB Ltd. CD Ltd.

Equity Share Capital Land & Building 2,00,000 1,50,000
( Rs. 10 ) 10,00,000 5,00,000 Plant & Machinery 3,00,000 3,00,000
General Res. 1/4/10 1,00,000 1,00,000 Stock 75,000 50,000
P & L A/c 1/4/2010 50,000 30,000 Sundry Debtors 50,000 60,000
Profits for the years 60,000 40,000 Investments at cost
Sundry Creditors 70,000 50,000 Share in CD Ltd. 5,00,000 ----
Bills Payable 10,000 5,000 Bills Receivable 10,000 5,000
Cash at Bank 1,55,000 1,60,000
12,90,000 7,25,000 12,90,000 7,25,000

1)AB Ltd. acquired 40,000 equity shares of CD Ltd. on 1 / 4 / 98.

2)Bills Receivable of AB Ltd. includes Rs.3,000 accepted by CD Ltd.
3)Sundry Debtors of AB Ltd. includes Rs.10,000 due form CD Ltd.
4)Stock of CD Ltd. includes goods purchased form AB Ltd. for Rs. 30,000 which were
invoiced by AB Ltd. at profit of 25% on the invoice price.
Prepare a consolidated Balance Sheet of AB Ltd. and its subsidiary CD Ltd. as on 31 st
March, 2011 giving the necessary working. [Mar.13, Oct.99]

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Problem 2] From the following information, prepare consolidated Balance Sheet of Sagar
Ltd. And its subsidiary Sarita Ltd. As at 31.3.2011 giving detailed working :

Liabilities Sagar Ltd Sarita Assets Sagar Ltd. Sarita

Ltd Ltd.
Share Capital : Goodwill 1,50,000 ---
Equity Shares of Fixed Assets 3,00,000 3,75,000
Rs.10 each 6,00,000 3,00,000 Investments :
General Reserve 3,00,000 90,000 1) 24,000 shares
Profit & Loss A/c 1,50,000 60,000 of Rs. 10 each in
6% Debentures --- 1,50,000 Sarita Ltd. at cost 3,00,000 ---
Loan from Sagar Ltd --- 15,000 2) 6% Debent. of
Sundry Creditors 1,50,000 60,000 Sarita Ltd. (face
Bills Payable 75,000 45,000 value Rs. 90,000) 90,000 ---
Stock 1,50,000 60,000
Sundry Debtors 1,20,000 60,000
Bills Receivable 60,000 ---
Bank Balance 90,000 1,50,000
Loan to Sarita Ltd 15,000 ---
12,75,000 7,20,000 12,75,000 7,20,000

Additional Information :
1) Sundry creditors of Sarita Ltd. Include Rs. 30,000 due to Sarita Ltd.
2) The closing stock of of Sagar Ltd. Includes stock worth Rs. 45,000 supplied by Sarita
Ltd. Which had invoiced at cost plus 20% profit on cost.
3) Bills payable of Sarita Ltd. Include Rs. 36,000 issued in favour of Sagar Ltd. Which was
discounted but not yet matured Rs. 6,000 of them.
4) Sagar Ltd. Acquired 24,000 Equity shares in Sarita Ltd. On 1.4.2010 on which date the
Balance Sheet of Sarita Ltd. Showed General Reserve at Rs. 30,000 and Profit & Loss A/c
credit balance of Rs. 15,000.
5) Sagar Ltd. Revalued Fixed Assets of Sarita Ltd. As on 1.4.2010 at Rs. 3,90,000.
[Oct.12]

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Problem3] Amit Ltd. acquired equity shares in Sumit Ltd. on 1.4.2010. Their Balance
Sheet as on 31.3.2011 were as follows :
Balance Sheet as on 31st March, 2009
Liabilities Amit Sumit Assets Amit Sumit
Rs. Rs. Rs. Rs.
Share Capital : Land & Build. 2,00,000 1,00,000
Sh. of Rs.100 each 5,00,000 3,00,000 Plant &Machin 1,50,000 2,00,000
General Reserve 40,000 10,000 Investments
Profit & Loss A/c 70,000 5,000 2700 shares 2,97,000 ---
Bills Payable 50,000 25,000 In Sumit Ltd.
Creditors 1,40,000 60,000 Stock 40,000 30,000
Debtors 50,000 60,000
Bills Receivable 63,000 10,000
8,00,000 4,00,000 8,00,000 4,00,000
Additional Information :
(i) On the date of purchase of shares there was no balance in General Reserve and Profit
and Loss showed a debit balance of Rs. 10,000 in the books of Sumit Ltd.
(ii) Sundry Debtors of Sumit Ltd. include Rs. 40,000 due from Amit Ltd.
(iii) Bills Payable of Sumit Ltd. include Rs. 18,000 in favour of Amit Ltd. which has
discounted Rs. 3,000 of them.
(iv) Stock of Sumit Ltd. includes Rs. 4,000 being purchased from Amit Ltd. on which the
company made a profit of 33 1/3 on cost.
Prepare consolidated Balance Sheet with necessary workings form the balance sheet
of Amit Ltd. and Sumit Ltd. [Mar.12 & Oct. 10]

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Problem 4] From the following Balance Sheet and other information given below, prepare
a consolidated Balance Sheet of Jivan Limited and its subsidiary Jyoti Limited as at 31 st
March, 2011. Show your working in detail :
Balance Sheet as on 31st March, 2011
Liabilities Jivan Jyoti Assets Jivan Jyoti
Ltd. Ltd. Ltd. Ltd.
Rs. Rs. Rs. Rs.
Share Capital Fixed Assets
Authorised & Issued : Goodwill 48,000 36,000
Equity Share of Land & Buildings 1,50,000 1,20,000
Rs. 100 each 6,00,000 2,40,000 Plant & Machinery 2,40,000 1,32,000
Reserve & Surplus Furniture & Fixt. 42,000 12,000
Gen.Res. as on 1.4.10 1,20,000 72,000 Investments
P&L A/c on 1.4.2010 60,000 24,000 1800 Equity Shares
Profit for the year 1,08,000 84,000 In Jyoti Ltd. 2,88,000 ---
Current Liabilities Current Assets
& Provisions Stock in Trade 1,20,000 1,08,000
Bills Payable --- 48,000 Debtors 24,000 90,000
Creditors 96,000 60,000 Cash at bank 72,000 30,000
9,84,000 5,28,000 9,84,000 5,28,000

Other information :
(1) Jivan Ltd. acquired the shares in Jyoti Ltd. on 1st Oct. 2010
(2) The Bills Payable of Jyoti Ltd. were all issued in favour of Jivan Ltd. which the
company get discounted.
(3) The creditors of Jyoti Ltd. included Rs. 24,000 payable to Jivan Ltd. for goods
supplied by that company.
(4) The stock of Jyoti Ltd. included goods of the value Rs. 9,600 which were supplied by
Jivan Ltd. at a profit of 33 1/3 % on cost. [Oct.,2011]

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Problem 5] The following are the summarised Balance Sheet of Sujata Ltd. and Vanita Ltd.
as on 31.3.2011
Liabilities Amount Amount Assets Amount Amount
Share Capital Freehold Premises 3,00,000 1,00,000
(Rs.20 each) 7,00,000 4,00,000 Machinery 4,80,000 2,20,000
Profit & Loss A/c 1,60,000 --- Share in Vanita Ltd
Sundry Creditors 3,60,000 1,40,000 (16000 Shares) 2,20,000 ---
Bills Payable 20,000 --- Sundry Debtors --- 20,000
Profit & Loss A/c --- 1,00,000
12,40,000 5,40,000 12,40,000 5,40,000

Additional Information :
(1) The Debtors of Sujata Ltd. included Rs. 40,000 due from Vanita Ltd.
(2) Sujata Ltd. acquired the shares of Vanita Ltd. on 1st April, 2010 when Vanita Ltd. has
a debit balance in Profit & Loss A/c of Rs. 1,60,000
(3) Bill Payable of Sujata Ltd. are all issued in favour of Vanita Ltd.
Prepare a Consolidated Balance Sheet with detail working. [Mar.2011]

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Problem 6] From the following information, prepare a consolidated balance Sheet of

Hawai Ltd. And its subsidiary Sundari Ltd. As at 31.3.2009 giving detailed working :

Balance Sheet as on 31.3.2009

Liabilities Hawai Sundari Assets Hawai Sundari
Ltd. Ltd. Ltd. Ltd.
(Rs.) (Rs.) (Rs.) (Rs.)
Share Capital Goodwill 1,00,000 ---
Equity Shares of Fixed Assets 2,00,000 2,50,000
Rs. 10 each 4,00,000 2,00,000 Investments :
i) 16,000 shares
General Reserve 2,00,000 60,000 Of Rs. 10 each
In sundari Ltd. at
Profit& Loss A/c 1,00,000 40,000 Cost 2,00,000 ---

6% Debentures --- 1,00,000 ii) 6% Debentures

Of Sundari Ltd.
Loan from --- 10,000 ( Face value
Hawai Ltd. Rs. 60,000 ) 60,000 ----
Sundry Creditors 1,00,000 40,000 iii) Govt. Securities ---- 50,000

Bills Payable 50,000 30,000 Stock 1,00,000 40,000

Sundry Debtors 80,000 40,000
Bills Receivable 40,000 ---
Bank Balance 60,000 1,00,000
Loan to Sundari 10,000 ----
Ltd.
8,50,000 4,80,000 8,50,000 4,80,000

Additional Information :
i) sundry creditors of Hawai Ltd. Includes Rs. 20,000 due to Sundari Ltd.
ii) the closing stock of Hawai Ltd. Includes stock worth Rs. 30,000 supplied by
Sundari Ltd. Which had invoiced at cost plus 20% profit on cost.
iii) Bills payabale of Sundari Ltd. Include Rs. 24,000 issued in favour of Hawai
Ltd. Which was discounted but not yet matured Rs. 4,000 of them.
iv) Hawai Ltd. Acquired 16,000 equity shares in Sundari Ltd. On 1.4.2008 on
which date the Balance Sheet of Sundari Ltd. Showed General Reserve at
Rs. 20,000 and profit and Loss A/c credit balance of Rs. 10,000.
v) Hawai Ltd. Revalued fixed assets of Sundari Ltd. As on 1.4.2008 at
Rs. 2,60,000. [ March, 2010]

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Problem 7] ‘H’ Ltd. acquired shares in ‘S’ Ltd. on 1-4-2008. Their Balance Sheets as on
31st March, 2009 were as follows:
Balance Sheets as on 31st March, 2009

Liabilities ‘H’ Ltd. ‘S’ Ltd. Assets ‘H’ Ltd. ‘S’ Ltd.
Shares of Land & Building 2,00,000 40,000
Rs. 100 each Plant & Machinery 3,00,000 60,000
Fully paid 5,00,000 1,00,000 Investments 1,00,000 --
General Reserve 1,00,000 40, 000 (800 Shares in
(as on 1-4-2008) ‘S’ Ltd. at cost )
Profit & Loss A/c 1,40,000 50, 000 Stock 80, 000 50, 000
Sundry Creditors 60, 000 10 ,000 Sundry Debtors 60, 000 30, 000
Cash 60, 000 20, 000
8,00,000 2,00,000 8,00,000 2,00,000

Additional Information:
1) Sundry Debtors of ‘H’ Ltd. included Rs. 10, 000 due from ‘S’ Ltd.
2) Stock of ‘S’ Ltd. includes goods purchased from ‘H’ Ltd. for Rs. 40, 000 on which
‘H’ Ltd. made a profit of 25% on sales.
3) On 1-4-2008 Profit and Loss A/c of ‘S’ Ltd. showed a credit balance of Rs.10,000.
Prepare consolidation Balance Sheet of ‘H’ Ltd. and its subsidiary ‘S’ Ltd.
[ Oct., 2009, Oct.2005]

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Problem 8] Prepare a consolidated balance sheet with necessary workings from the balance
sheets of Akash Ltd. and Badal Ltd. and additional information given below :

Balance Sheets as on 31st March, 2009

Liabilities Akash Badal Assets Akash Badal
Equity Shares L & Building 7,00,000 5,00,000
of Rs.100 each 25,00,000 15,00,000 P & Machinery 5,40,000 6,50,000
General Reserve 2,00,000 50,000 Investment 14,85,000 ---
P & Loss A/c 3,50,000 25,000 (13500 shares
in Badal Ltd
Bills Payable 1,00,000 50,000 Stock 2,00,000 1,50,000
Sundry Creditors 2,50,000 1,25,000 Debtors 2,40,000 2,00,000
Bills Receivabl 1,60,000 2,00,000
Cash 75,000 50,000
Total 34,00,000 17,50,000 Total 34,00,000 17,50,000

Additional Information :
(i) Akash Ltd. purchased the share in Badal Ltd. on 1st April, 2008 when there was no
balance in General Reserve and Profit& Loss Account showed a debit balance of Rs.
50,000 in the books of Badal Ltd.
(ii) Sundry debtors of Badal Ltd. includes Rs. 50,000 due from Akash Ltd.
(iii) Bills Payable of Badal Ltd. includes Rs. 30,000 in favour of Akash Ltd. which was
discounted Rs. 5,000 of them.
(iv) Stock of badal Ltd. includes Rs. 50,000 being purchased from Akash Ltd. on which
the latter company made a profit of 25% on cost. [March, 2009]

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Problem 9] The following are the summarized B. Sheets of ‘H’ Ltd. & ‘S’ Ltd. As on
31.12.2007 :
Balance Sheet as on 31st December, 2007
Liabilities H Ltd. S Ltd. Assets H Ltd. S. Ltd.
Rs. Rs. Rs. Rs.
Share Capital of rs. Land and Building 3,00,000 1,00,000
20 each 7,00,000 4,00,000 Plant and Machinery 4,80,000 2,20,000
Profit & Loss A/c 1,60,000 ---- Investments (16,000
Sundry Creditors 4,20,000 2,00,000 shares of Rs. 20 each) 2,20,000
Bills Payable 20,00 ---- Sundry Debtors 3,00,000 1,60,00
Bills Receivable 20,000
Profit & Loss A/c
13,00,000 6,00,000 13,00,000 6,00,000

1) ‘H’ Ltd. Acquired the shares of ‘S’ Ltd. On 1st January, 2007 when ‘S’ Ltd. Has a
debit balance in Profit & Loss Account Rs. 1,60,000.
2) The debtors of ‘H’ Ltd. Included Rs. 20,000 due from ‘S’ Ltd.

3) Bills Payable of ‘H’ Ltd. Are all issued in favour of ‘S’ Ltd.
Prepare consolidated Balance Sheet. [October, 2008]

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Problem 10] The following are the summarized Balance Sheet of Nagkanya Ltd. And
Rajmata Ltd. As on 31st March, 2007.

Liabilities Nagkanya Rajmata. Assets Nagkanya Rajmata.

Ltd. Ltd. Ltd. Ltd.
Share Capital
Rs.10 fully paid 1,80,000 1,00,000 Sundry Assets 1,90,000 80,000
Profit & Loss A/c 35,000 --- Debtors 50,000 25,000
Creditors 80,000 30,000 Investment inshare
of Rajmata Ltd
(8000 shares) 55,000 ---
Profit & Loss A/c --- 25,000
2,95,000 1,30,000 2,95,000 1,30,000

Additional Information :
(i) Nagkanya Ltd. Acquired the shares in Rajmata Ltd on 1st August, 2006.
(ii) The Balance Sheet of Rajmata Ltd as on 31st March, 2006 showed a Debit Balance on
Profit & Loss A/c Rs. 40,000.
(iii) The debtors of Nagkanya Ltd include Rs. 10,000 due from Rajmata Ltd., where as the
creditors of Rajmata Ltd. Include Rs. 5,000 due to Nagkanya Ltd. As a cheque of Rs.
5,000 remitted by Rajmata Ltd. To Nagkanya Ltd. Being in transit.
Prepare a consolidated Balance Sheet. (March, 08)

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Problem 11] Power Ltd. acquired 4000 shares of Bijali Ltd., on 1st October, 2006 1995.
Their Balance Sheets as on 31st March, 2007 stood as follows :

Liabilities Power Bijali Assets Power Bijali

Ltd. Ltd. Ltd. Ltd.
Share Capital
Eq. Share of Rs.100 Sundry Assets 6,00,000 5,00,000
Each 10,00,000 5,00,000 Investment (4000
General Rserve 2,50,000 1,50,000 Eq. Share in Bijali
Profit & Loss A/c 1,00,000 50,000 Ltd.at Rs.120 each) 4,80,000 ---
Creditors 1,50,000 50,000 Sundry Debtors 2,50,000 1,50,000
Stock 1,50,000 50,000
Cash at Bank 20,000 50,000
15,00,000 7,50,000 15,00,000 7,50,000

Additional Information :
(1) On 1-4-2006, the Profit and Loss A/c and the General Reserve of Bijali Ltd., Showed the
credit balance of Rs. 30,000 and Rs. 1,00,000 respectively.
(2) Debtors of Power Ltd., include Rs. 15,000 due from Bijali Ltd.
(3) Stock of Power Ltd., includes Rs. 20,000. Purchased from Bijali. Ltd., which made 20%
profit on selling price.
Prepare a consolidated Balance Sheet of Power Ltd., and it’s subsidiary Bijali Ltd., as
on 31.3.2007. [ Oct.2007 , Apr. 96 ]

Problem 12] From the Balance Sheets and information given below, prepare a Consolidated
Balance Sheet as at 31-12-2006.

Liabilities H Ltd. S. Ltd. Assets H. Ltd. S.Ltd.

Share Capital Building 90,000 ---
Eq. Share Rs.100 each 2,00,000 75,000 Plant & Machinery 2,00,000 ---
Gen. Reserve 45,000 15,000 Stock 60,000 1,27,500
P & L A/c (1.1.2006) 60,000 30,000 Debtors 15,000 45,000
Debentures 50,000 30,000 Investment in share
Bills Payable 22,500 --- of S Ltd. (450 share
Creditors 25,000 15,000 at cost 97,500 ---
Bank 15,000 15,000
Bills Receivable ---- 15,000
4,77,500 2,02,500 4,77,500 2,02,500

From the following information prepare consolidated Balance Sheet as on 31st Dec..2006 :
(i) Share were purchased by H Ltd. on 1st July, 2006.
(ii) On 1st Jan., 2006 balance on Gen. Reserve was Rs. 15,000 of S Ltd.
(iii) Bills Receivable held by S Ltd. were all accepted by H. Ltd.
(iv) Debtors of S Ltd. included Rs. 9,000 due from H Ltd.
(v) Goods supplied by S Ltd. to H. Ltd. worth Rs. 6,000 which was at cost plus 33 1/3 %.
(March, 07)

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Problem 13] H Ltd. acquired Equity Shares in S Ltd. on 1.4.2005. Their Balance Sheets as
on 31.3.2006 were as follows :
Balance Sheet
Liabilities H Ltd. S. Ltd. Assets H. Ltd. S.Ltd.
(Rs.) (Rs.) (Rs.) (Rs.)
Share Capital Land & Bldg 1,00,000 20,000
Equity Shares of Plant & Machinery 1,50,000 30,000
Rs100eachfully paid 2,50,000 50,000 Investmt.(400 shares
General Reserve 50,000 20,000 in‘S’Ltd. at cost 50,000 ---
(as on 1.4.2005) Stock 40,000 25,000
Profit and Loss A/c 70,000 25,000 Debtors 30,000 15,000
Creditors 30,000 5,000 Cash 30,000 10,000
4,00,000 1,00,000 4,00,000 1,00,000
Additional Information :
(1) Sundry Debtors of H Ltd include Rs. 5,000 due from S Ltd.
(2) Stock of S Ltd. includes goods purchased from H Ltd for Rs. 20,000 on which
H Ltd. made a profit of 25% on sales.
(3) On 1.4.2005 the Profit & Loss A/c of S Ltd showed a credit balance of Rs. 5,000.
Prepare a consolidated B/S of H Ltd. and its subsidiary S Ltd. as on 31.3.2006
[ Oct., 2006, 2004, April., 95]

Problem 14] From the Balance Sheets and information given below, prepare a Consolidated
Balance Sheet as at 31-12-2005.
Liabilities H Ltd. S. Ltd. Assets H. Ltd. S.Ltd.
Share Capital
Rs.10 fully paid 10,00,000 2,00,000 Sundry Assets 8,00,000 1,20,000
Profit & Loss A/c 4,00,000 1,20,000 Stock 6,10,000 2,40,000
Reserve 1,00,000 60,000 Debtors 1,30,000 1,70,000
Creditors 2,00,000 1,20,000 Bills Receivable 10,000 ---
Bills Payable --- 30,000 Shares in S Ltd.
15,000 at cost 1,50,000 ---
17,00,000 5,30,000 17,00,000 5,30,000

(i) All the profit of S. Ltd. has been earned since the shares were acquired by H Ltd. but
there was already the Reserve of Rs.60,000 at that date.
(ii) The bills accepted by S Ltd. are all in favour of H Ltd. which had discounted Rs. 20,000
of them.
(iii) Sundry assets of S Ltd. are found undervalued by Rs. 20,000 at the time of acquisition of
shares.
(iv) The stock of H Ltd. includes Rs. 50,000 bought from S. Ltd. at a profit to the latter of
25% on cost (March, 06)

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Problem 15] From the following Balance Sheets and particulars given below prepare
consolidated B/Sheet of H Ltd. and S Ltd. as on 31st Mar.05 with detailed working notes :
Balance Sheet as on 31-3-2005
Liabilities : H Ltd. S Ltd.
Equity shares of Rs. 100 each 3,00,000 1,20,000
General Reserve 60,000 36,000
Profit & Loss A/c 84,000 54,000
Bills Payable 18,000 24,000
Creditors 36,000 42,000
Total 4,98,000 2,76,000
Assets : H Ltd. S Ltd.
Goodwill 24,000 18,000
Building 75,000 60,000
Machinery 1,20,000 66,000
Bills Receivable 21,000 6,000
Investments 900 Eq. Shares in S Ltd. 1,44,000 -----
Stock 60,000 54,000
Debtors 18,000 57,000
Cash 36,000 15,000
Total 4,98,000 2,76,000
Adjustments :
a) H Ltd. acquired the shares in S Ltd. on 1.10.2004
b) The balance of Profit and Loss A/c of S Ltd. as on 1.4.2004 was Rs.12,000 (Credit)
and on General Reserve Rs. 30,000.
c) The stock of S Ltd., includes goods worth Rs. 5,000 which were supplied by H Ltd.
at profit of 25% on cost.
d) The Bills payable in H Ltd. represented Rs. 15,000 issued in favour of S Ltd.
(April, 2005)

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Problem 16] The following are the Balance Sheets of ‘ P’ Ltd. and ‘R. Ltd. as at 31.3.2003.
Balance Sheets as on 31-3-2003
Liabilities P Ltd. Rs. R Ltd.,Rs.
Share Capital (Equity Shares of Rs. 10 each) 2,50,000 1,00,000
General Reserve 75,000 30,000
Profit and Loss A/c 70,000 60,000
Sundry Creditors 50,000 20,000
Bills Payable 5,000 2,000
Total 4,50,000 2,12,000
Assets : P Ltd. Rs. R Ltd.,Rs.
Goodwill 20,000 10,000
Fixed Assets 2,00,000 1,20,000
Stock 80,000 30,000
Sundry Debtors 60,000 50,000
Investments (6,000 Equity Shares of R. Ltd.) 85,000 ----
Cash in hand 5,000 2,000
Total 4,50,000 2,12,000

Additional Information :
(i) Shares in R Ltd. were acquired by P Ltd. on 1st Oct., 2002.
(ii) R Ltd. had on 1.4.2002 Rs.18,000 in General Reserve and Rs.14,000 in P& Loss A/C.
(iii) Included in the creditors of R Ltd. Rs. 12,000 for goods supplied by P Ltd.,
(iv) Included in the stock of R. Ltd. are goods to the value of Rs. 6,000 which were supplied
by P Ltd. at a profit of 25% on cost.
Prepare a consolidated Balance Sheet of P Ltd. with its subsidiary R Ltd. as on that date; with
detailed workings (April, 2004)

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Problem 17] The following are the summarised B/S of ‘A’ Ltd. and ‘B’ Ltd. as on 31-3.03

Balance Sheet as on 31-3-2003

Liabilities : A Ltd. B Ltd.
Share Capital
Eq. Share of Rs. 100 each 10,00,000 2,50,000
General Reserve ( 1-4-2002 ) 2,00,000 80,000
Profit and loss a/c ( 1-4-2002 ) 60,000 60,000
Profit for the year ended 31-3-2003 1,50,000 50,000
Creditors 2,50,000 1,30,000
16,60,000 5,70,000
Assets : A Ltd. B Ltd.
Goodwill 1,00,000 50,000
Fixed Assets 7,00,000 3,00,000
Stock 2,00,000 1,00,000
Investment 3,40,000 ----
Bills Receivable 30,000 30,000
Cash at Bank 50,000 20,000
Debtors 2,40,000 70,000
16,60,000 5,70,000
a) A Ltd. acquired 15,000 equity shares of B Ltd. for Rs. 1,90,000 on 1-4-2002.
b) Debtors of A Ltd. includes Rs. 30,000 due from B Ltd.
c) Bills Receivable of B Ltd. includes Rs. 10,000 due from A Ltd.
d) The stock of B Ltd. includes goods purchased from A Ltd. of Rs. 10,000 which
includes profit charged by A Ltd. at 25 % on cost.
Prepare a consolidated Balance Sheet as on 31-3-2003. [ March 2003 ]

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Problem 18] A Ltd. acquired 4000 shares of B Ltd. on 1st March, 2001. Their Balance Sheet
As on 31st Dec., 2001 stood as follow :
Balance Sheet as on 31st December, 2001
Liabilities A Ltd. ( Rs.) B Ltd. ( Rs. )
Share Capital :
Equity Shares of Rs. 100each 10,00,000 5,00,000
General Reserve 2, 50,000 -----
Profit and Loss A/c 1,00,000 1,52,000
Creditors 1,50,000 98,000
Total 15,00,000 7,50,000
Assets A Ltd. (Rs.) B Ltd. (Rs. )
Fixed Assets 6,00,000 5,00,000
Investments : ---- ----
4000Equity Shares ( at Rs. 120 each) 4,80,000 ----
Current Assets : ---- ----
Sundry Debtors 2,50,000 1,50,000
Stock 1,50,000 50,000
Cash at Bank 20,000 50,000
Total 15,00,000 7,50,000

Additional Information :-
1) On 1-1-2001 the Profit and loss A/c of B Ltd. Showed the debit balance of Rs. 40,000
2) Debtors of A Ltd include Rs. 15,000 due from B Ltd.
3) Stock of A Ltd . Include Rs. 20,000 purchased from B ltd., which made 20%
profit on selling price.
Prepare a consolidated B/S of A Ltd. and its subsidiary B Ltd . as on that date.[ March 02]

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Problem 19] The following are the Balance Sheets of Satara Ltd.& Poona Ltd. as on 31.3.94.

Liabilities Satara Poona Assets Satara Poona

Ltd. Ltd. Ltd. Ltd.
Share Capital : Goodwill 60,000 20,000
Shares of Rs. 10 each 10,00,000 4,00,000 Machinery 7,32,000 2,72,000
General Reserve 1,50,000 --- Stock 1,80,000 90,000
P & L A/c 1,42,000 60,000 Debtors 2,95,000 1,23,000
Sundry Creditors 1,82,000 87,000 Cash 35,000 27,000
Bills Payable 20,000 --- Investment
(24000 Sh. in ‘S’ 1,92,000 ---
Ltd.)
Bills Receivable --- 15,000
14,94,000 5,47,000 14,94,000 5,47,000
Other Information :
a) Satara Ltd. acquired the shares in Poona Ltd. on 1st Oct. 19930
b) The P & L A/c of Poona Ltd. showed a debit balance of Rs.20,000 on 1st April 1993.
c) Included in the stock of Poona Ltd. are goods of Rs. 20,000 which were supplied by
Satara Ltd. at Cost plus 25%.
d) The Bills Payable in Satara Ltd. represented Rs.15,000 issued in favour of Poona Ltd.
[ April 2001/94 ]

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Problem 20] From the following Balance Sheets and particulars given below prepare
consolidated Balance Sheet of H. Ltd. and S Ltd. as on 31-3-1998.
Balance Sheets as on 31-3-1998
Liabilities H. Ltd. S. Ltd.
Share Capital :
Equity Shares of Rs. 100 each fully paid 1,00,000 40,000
General Reserve 20,000 12,000
Profit and Loss A/c 28,000 18,000
Bills Payable --- 8,000
Creditors 18,000 14,000
1,66,000 92,000
Assets H. Ltd. S. Ltd.
Goodwill 8,000 6,000
Land and Building 25,000 20,000
Plant and Machinery 40,000 22,000
Furniture 7,000 2,000
300 Equity Shares in S. Ltd. at cost 48,000 ---
Stock 20,000 18,000
Debtors 6,000 19,000
Cash at bank 12,000 5,000
1,66,000 92,000
(a) H. Ltd. acquired the shares in S. Ltd. on 1-10-1997.
(b) The balance on Profit and Loss Account of S. Ltd. as on 1-4-1997 was Rs. 4,000
( credit ) and on General Reserve Rs. 10,000.
(c) The Bills Payable of S. Ltd. were all issued in favour of H. Ltd. of which company
got bills discounted.
(d) The stock of S. Ltd. included goods worth Rs. 1,600 which were supplied by H. Ltd.
at a Profit of 25% on cost. [ October 1998 ]

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Problem 21] The summarised Balance Sheets of Honey Ltd. and Moon Ltd. as on 31st
March, 1998 were as follows
Liabilities Honey Ltd. Moon Ltd.
Rs. Rs.
Capital :
Equity Shares of Rs. 100 each 2,50,000 1,00,000
Capital Reserve --- 60,000
General Reserve 1,20,000 ---
Profit and Loss A/c 28,600 18,000
Bank Overdraft 50,000 ---
Bills Payable including Rs. 1,500 to Honey Ltd. --- 4,200
Creditors 23,550 ---
Creditors :
Honey Ltd. --- 500
Others --- 4,000
4,72,150 1,86,700
Assets Honey Ltd. Moon Ltd.
Plant 1,20,000 54,700
Premises 75,000 90,000
Investment in Moon Ltd. at Cost 1,70,000 ---
Stock 70,000 18,000
Debtors 21,000 20,000
Amount owing by Moon Ltd. 1,000 ---
Bank 7,250 4,000
B/R including Rs. 1,500 from Moon Ltd. 7,900 ---
4,72,150 1,86,700
Honey Ltd. acquired 800 Equity Shares as Rs. 100 each in Moon Ltd. on July 1,1997. Prepare
a consolidated Balance Sheet as on March 31, 1998, showing your workings
( a ) Sundry creditors of Honey Ltd. include Rs. 6,000 due to Moon Ltd.
( b ) The directors are advised that the premises of Moon Ltd. are undervalued by
Rs. 10,000. And its plants overvalued by Rs. 5,000.
( c ) A Cheque for Rs. 500 sent to Honey Ltd. by Moon Ltd. on March 30,1998, was
not received by the former until April 2, 1998. [ April 1998 ]

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Problem 22] The following are the summarised Balance Sheets of H. Ltd., and S. Ltd., as on
31st March, 1997
Balance Sheets as on 31st March, 1997.
Liabilities H. Ltd. S Ltd. Assets H. Ltd. S Ltd.
Rs. Rs. Rs. Rs.
Share Capital : Building 50,000 40,000
Shares of Rs. 10 1,80,000 1,00,000 Machinery 80,000 20,000
Sundry Creditors 40,000 20,000 Furniture 60,000 20,000
Bills Payable 20,000 10,000 Debtors 50,000 25,000
Bank Overdraft 20,000 --- Investment
P & L A/c 35,000 --- (8000 Sh. In ‘S’ Ltd.) 55,000 ---
P & L A/c --- 25,000
2,95,000 1,30,000 2,95,000 1,30,000
( 1 ) Debtors of H Ltd., include Rs. 10,000 due from S Ltd.
( 2 ) H Ltd. acquired shares of S Ltd., on 1-4-1996 when S Ltd., had debit balance of
Rs. 40,000 in P & L A/c. Prepare consolidated Balance Sheet. [ October 1997 ]

Problem 23] From the following Balance sheets and particulars given below prepare
consolidated Balance Sheet of S Ltd. and T Ltd. as on 31-3-97.

Liabilities S Ltd. T Ltd. Assets S Ltd. T Ltd.

Rs. Rs. Rs. Rs.
Share Capital : Goodwill 12,000 9,000
Equity Shares of Rs. Investments ( 450
100 each fully paid 1,50,000 60,000 Equity sh. in T Ltd.) 72,000 ---
General Reserve 30,000 18,000 Land & Building 37,500 30,000
Profit & Loss A/c 42,000 27,000 Plant & Machinery 60,000 33,000
Bills Payable --- 12,000 Furniture 10,500 3,000
Creditors 27,000 21,000 Stock 30,000 27,000
Debtors 9,000 28,500
Cash at Bank 18,000 7,500
2,49,000 1,38,000 2,49,000 1,38,000

Additional Information:
a) S Ltd. acquired the shares in T Ltd. on 1st July 1996.
b) The balance on P & L A/c of T Ltd. as on 1.4.96 was Rs.6,000(Credit) and on General
Reserve Rs.15,000.
c) The Bills Payable of T Ltd. were all issued in favour of S Ltd. of which company got
bills discounted.
d) The stock of T Ltd. included goods worth Rs. 2,400 which were supplied by S Ltd. at a
profit of 25% on cost. [ April 1997 ]

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Problem 24] The following are the Balance Sheets of S Ltd. and P Ltd. as on 31 March 1995.
Balance Sheets
Liability S Ltd. P Ltd. Assets S Ltd. P Ltd.
Rs. Rs. Rs. Rs.
Share Capital : Goodwill 30,000 10,000
Sha. of Rs.10 each 5,00,000 2,00,000 Machinery 3,66,000 1,36,000
General Reserve 75,000 --- Stock 90,000 45,000
Profit & Loss A/c. 71,000 30,000 Debtors 1,47,500 61,500
Creditors 91,000 43,500 Cash 17,500 13,500
Bills Payable 10,000 --- Investment ( 12000
Sha.of P Ltd at cost ) 96,000 ---
Bills Receivable --- 7,500
7,47,000 2,73,500 7,47,000 2,73,500

Other Information :
( 1 ) S Ltd. acquired the shares in P Ltd. on 1st April 94.
( 2 ) The Profit & Loss Account of P Ltd. showed a debit balance of Rs.10,000 on 1st April 94
( 3 ) Included in the stock of P Ltd. are goods of Rs. 10,000 which were supplied by S Ltd.
at cost plus 25%.
( 4 ) The Bills Payable in S Ltd. represented Rs. 7,500 including in favour of P Ltd.
Prepare consolidated Balance Sheet with full workings. [ October 1995 ]

Problem 25] Following are the Balance Sheet of Karad Ltd & Kolhapur Ltd. as on 31.3.93

Liabilities Karad Kolha- Assets Karad Kolha-

Ltd. pur Ltd. Ltd. pur Ltd.
Share Capital : Land & Building 1,50,000 53,000
Shar. of Rs.100 each 3,00,000 1,50,000 Plant &Machinery 75,000 90,000
General Reserve 20,000 5,000 Investment
P & L A/c 35,000 2,500 (1350 Sh. in ‘K’ Ltd.) 1,48,500
Bills Payable 12,500 15,500 Stock 20,000 25,000
Sundry Creditors 71,000 30,000 Debtors 26,000 30,000
Bank Overdraft 12,500 -- Bills Receivable 31,500 5,000
Outstanding Exp. 1,500 2,500 Cash 1,500 2,500
4,52,500 2,05,500 4,52,500 2,05,500
Additional Information : a) Karad Ltd. acquired the share in Kolhapur Ltd. showed a debit
Balance of Rs.5,000 and there was no balance in the General Reserve.
b) Sundry debtors of Kolhapur Ltd. included Rs.20,000 due from Karad Ltd.
a) Bills payable of Kolhapur Ltd. included Rs.9,000 issued in favour of Karad Ltd.
Prepare Consolidated Balance Sheet. ( October 1994 )

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Problem 26] Following is the Balance sheets of Poona ltd & Aurangabad Ltd. as on 31.12.92
Balance Sheet as on 31st Dec. 1992.
Liabilities Poona A’bad Assets Poona A’bad
Ltd. Ltd. Ltd. Ltd.
Equity Share Land & Building 3,00,000 1,06,000
Capital ( Rs. 100 ) 6,00,000 3,00,000 Plant & Machinery 1,50,000 1,80,000
General Reserve 40,000 10,000 Investments ( 2700
Profits & Loss A/c 70,000 5,000 shares in A Ltd. at
Bills Payable 25,000 31,000 Cost ) 2,97,000 ---
Sundry Creditors 1,42,000 60,000 Stock 40,000 50,000
Bank Overdraft 25,000 --- Debtors 52,000 60,000
Bills Receivables 63,000 10,000
9,02,000 4,06,000 9,02,000 4,06,000

Additional Information :
1) Poona Ltd. acquired the shares in Aurangabad Ltd. on 1st Jan.1992 on which date the
Profit & Loss A/c showed a debit balance of Rs.10,000 in the books of Aurangabad Ltd.
and there was balance in General Reserve.

2) Sundry Debtors of Aurangabad Ltd. included Rs.40,000 due from Poona Ltd.
3) Bills Payable of Aurangabad Ltd. included Rs.18,000 issued in favour of Poona Ltd.
which has discounted Rs. 3,000 of them.
Prepare a Consolidated Balance Sheet. ( April 1993 )
Problem 27] The Balance Sheet of H Ltd. & S Ltd. on were as follows :
Liabilities H Ltd. S Ltd. Assets H Ltd. S Ltd.
Share Capital : Buildings 1,00,000 60,000
Eq.Share Rs.10 each 5,00,000 3,00,000 Machinery 1,50,000 2,00,000
General Reserve 80,000 60,000 Stock 1,00,000 1,20,000
P & L A/c 50,000 30,000 Debtors 90,000 50,000
Sundry Creditors 80,000 50,000 Cash 20,000 10,000
Investments (20000
Shares in S Ltd.) 2,50,000 --
7,10,000 4,40,000 7,10,000 4,40,000
Debtors include Rs. 10,000 due from S Ltd. Stock of H Ltd. includes Rs.20,000 purchased
from S Ltd. which made 15% profit on selling price. When H Ltd. acquired control on S Ltd.,
Ltd. had Rs. 40,000 in General Reserve and Rs.10,000 in Profit and Loss A/c. ( April 1991 )

End of Notes
Total Problems - 27

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