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a 45 520 P P 900 6. Consolidated Balance Sheet of H Ltd. and its subsidiary S Ltd. as on 31.03.2009 Liabilities Rs.Lakhs Assets Rs.Lakhs Share Capital: Authorised 15,000 Fixed Assets Issued and Paid up 12,000 Land and Buildings 2.718 Reserves & Surplus Plant & Machinery (4,905 +4,900) 9,805 C/Ron Consolidation 1,320 Furniture and Fittings (1,845 + 586) 2,431 Profit and Loss Account 2,947 Current Assets: General Reserve 2,892 Stock (3,949 + 1,956 - 20 Unrealized Pft) 5,885 Minority Interest 3,120 Trade Debtors (2,600 + 1,363) 3,963 Current Liabilities: Cash and Bank (1,490 + 204) 1,694 Bills Payable (372 + 160 - 45 Mutual) (Set off) 487 Bills Receivable (360 +199-45 Mutual) (Set off) 514 Sundry Creditors (1,461 +854) 2,315 Sundry Advances Provision for Taxation (855 +394) 1,249 Proposed Dividend 1,200 Total 27,530 Total 27,530 Illustration 15: Bonus Issue, Reverse Working for Bonus Amount - Investment in Debentures Balance Sheet of P Ltd. and Q Ltd. as at 31.12.2008 is given below (Rs. in 000's)- Liabilities Q Liabilities Q Equity Share Capital (Rs.10) 5,000 2,400 Goodwill 300 200 Securities Premium 200 140 Buildings 1,000 1,000 General Reserve 1,000 1,600 Machinery 4,000 2.440 Profit & Loss Account 600 Investment in Shares: 8% Debentures 2,000 1,000 -1,92,000 Shares of QLtd. 1,500 Trade Creditors 400 Investments in Debentures: Outstanding Expenses 300 150 - In Q Ltd. (Face Value Rs.4,00,000) 450 - In P Ltd. (Face Value Rs.200,000) 220 Sundry Debtors 1,500 1,000 Stock 1,000 1,000 Cash and Bank 200 100 Preliminary Expenses 100 50 Outstanding Income 150 280 Total 10,020 6,290 Total 10,200 6,290 1. When the Shares were acquired, Q Ltd. had Rs.2.2 Lakhs in General Reserve and Rs.1,00,000 in Securities Premium, Rs.3,00,000 (Dr.) in Profit and Loss Account 2. Two years after the date of acquisition Bonus Shares at 1 to 1 were issued out of General Reserve. 3. One year after the Bonus issue, Rights Shares were issued at 10% Premium at 1 for 5 held and P Ltd. purchased all the shares offered to it! 4. P Ltd, received Rs.1,92,000 dividend for the last year and Rs.96,000 interim dividend in the current year, i.e. 3 years after the Rights Issue. 5. For the current year 15% dividend (including Interim Dividend) has been proposed by Q Ltd., 10% by P Ltd., but no effect has yet been given in the accounts. 6. On the same day referred to in (5) above, Bonus Dividend has been declared at 1 to 2, but no effect has yet been given. 7. 50% of the shares originally purchased in Q Ltd. were paid for to the shareholders of Q Ltd. by 50,000 shares of P Ltd. issued at 10% premium. 8. Debenture Interest of both the Companies falls due on 31" December, but payments are made 2 or 3 days after. Prepare Consolidated Balance Sheet as at 31.12.2008 800 a 45 520 P P 900 6. Consolidated Balance Sheet of H Ltd. and its subsidiary S Ltd. as on 31.03.2009 Liabilities Rs.Lakhs Assets Rs.Lakhs Share Capital: Authorised 15,000 Fixed Assets Issued and Paid up 12,000 Land and Buildings 2.718 Reserves & Surplus Plant & Machinery (4,905 +4,900) 9,805 C/Ron Consolidation 1,320 Furniture and Fittings (1,845 + 586) 2,431 Profit and Loss Account 2,947 Current Assets: General Reserve 2,892 Stock (3,949 + 1,956 - 20 Unrealized Pft) 5,885 Minority Interest 3,120 Trade Debtors (2,600 + 1,363) 3,963 Current Liabilities: Cash and Bank (1,490 + 204) 1,694 Bills Payable (372 + 160 - 45 Mutual) (Set off) 487 Bills Receivable (360 +199-45 Mutual) (Set off) 514 Sundry Creditors (1,461 +854) 2,315 Sundry Advances Provision for Taxation (855 +394) 1,249 Proposed Dividend 1,200 Total 27,530 Total 27,530 Illustration 15: Bonus Issue, Reverse Working for Bonus Amount - Investment in Debentures Balance Sheet of P Ltd. and Q Ltd. as at 31.12.2008 is given below (Rs. in 000's)- Liabilities Q Liabilities Q Equity Share Capital (Rs.10) 5,000 2,400 Goodwill 300 200 Securities Premium 200 140 Buildings 1,000 1,000 General Reserve 1,000 1,600 Machinery 4,000 2.440 Profit & Loss Account 600 Investment in Shares: 8% Debentures 2,000 1,000 -1,92,000 Shares of QLtd. 1,500 Trade Creditors 400 Investments in Debentures: Outstanding Expenses 300 150 - In Q Ltd. (Face Value Rs.4,00,000) 450 - In P Ltd. (Face Value Rs.200,000) 220 Sundry Debtors 1,500 1,000 Stock 1,000 1,000 Cash and Bank 200 100 Preliminary Expenses 100 50 Outstanding Income 150 280 Total 10,020 6,290 Total 10,200 6,290 1. When the Shares were acquired, Q Ltd. had Rs.2.2 Lakhs in General Reserve and Rs.1,00,000 in Securities Premium, Rs.3,00,000 (Dr.) in Profit and Loss Account 2. Two years after the date of acquisition Bonus Shares at 1 to 1 were issued out of General Reserve. 3. One year after the Bonus issue, Rights Shares were issued at 10% Premium at 1 for 5 held and P Ltd. purchased all the shares offered to it! 4. P Ltd, received Rs.1,92,000 dividend for the last year and Rs.96,000 interim dividend in the current year, i.e. 3 years after the Rights Issue. 5. For the current year 15% dividend (including Interim Dividend) has been proposed by Q Ltd., 10% by P Ltd., but no effect has yet been given in the accounts. 6. On the same day referred to in (5) above, Bonus Dividend has been declared at 1 to 2, but no effect has yet been given. 7. 50% of the shares originally purchased in Q Ltd. were paid for to the shareholders of Q Ltd. by 50,000 shares of P Ltd. issued at 10% premium. 8. Debenture Interest of both the Companies falls due on 31" December, but payments are made 2 or 3 days after. Prepare Consolidated Balance Sheet as at 31.12.2008 800

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