0%(1)0% found this document useful (1 vote) 151 views2 pagesHolding Compny Problems 1
PROBLEMS IN HOLDING COMPANY
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The Balance Sheets of C Ltd. and D Ltd. as at 31st December, 1986 are as
follows:
In the case of ‘D’ Ltd., profit for the year ended 31st December 1986 is
Rs. 12,000 and transfer to reserve is Rs. 5,000. The holding of C Ltd. in D Ltd. is
90% acquired on 30th June 1986.
Draft a consolidated Balance Sheet of ‘C’ Ltd. and its subsidiary.
On 31st March, 1996 the balance sheets of H Ltd. and its subsidiary S Ltd.
stood as follows:
Liabilities HLtd.| S$ Lid. Assets
Fixed assets
General reserve 75% shares in
Profit & Loss A/c S Lid. (at cost)
Creditors
Stock
Draw a consolidated Balance Sheet as at 31st March, 1996 after taking into
consideration the following information:
@ HLtd. acquired the shares on 31st July, 1995.
Gi) S Ltd. eamed profit of Rs. 45,000 for the year ended 31st March, 1996.
(ii) In January 1996 S Lid. sold to H Ltd. goods costing Rs. 15,000 for Rs.20,000.
On 31st March, 1996 half of these goods were lying as unsold in the
godown of H Ltd.
Give your working notes. From the following Balance SI i
conaolideted Balas Shee ce Sheet relating to H Ltd. and $ Ltd. prepare a
Balance Sheet as on 31.12.1992
Liabilities
Share capital (Shares
of Rs.10 each)
Profit and Loss A/c
Reserves
Creditors
Bills payable
(a) All profits of S Ltd. have been eamed after the shares were acquired by
H Ltd. But there was already a reserve of Rs. 60,000 on that date.
(&) All the bills payable of $ Ltd. were accepted in favour of H Ltd.
(c)_ The stock of H Ltd. includes Rs. 50,000 purchased from S Ltd. The profit
added was 25% on cost.
X Ltd. purchased 750 shares in Y Ltd. on 1.7.94. The following were their
Balance Sheets on 31.12.94
Liabilities
Share capital:
of Rs. 100 each
Profit & Loss A/c
Creditors
Bills payable
Current Account:
XLid.
Additional information
(@) Bills receivable of X Ltd. include Rs. 10,000 accepted by Y Ltd.
(6) Debtors of X Ltd. include Rs. 20,000 payable by ¥ Ltd.
© Acheque of Rs. 5,000 sent by Y Ltd. on 28th December was not yet
received by X Ltd. on 31st December 1994.
(@_Profit and Loss A/c of Y Ltd. showed a Balance of Rs. 20,000 on .1.1.94.
‘You are required to prepare a consolidated Balance Sheet of X Ltd. and Y Ltd.
ason 31.12.1994,
