Corporate Accounting Solved Question Papers Dibrugarh UniversityCorporate Accounting Solved Paper May 2012 (Old Course)COMMERCE (General/Speciality)Course: 203 (Corporate Accounting )The figures in the margin indicate full marks for the questionsFull Marks: 80Pass Marks: 32Time: 3 hours
1. (a) Chose the correct Answer:(i) A company can issue shares at a discount under Section (77/78/53).
(ii) Profit on re-issue of forfeited shares is transferred to (capital reserve/general reserve).
(iii) Account for amalgamation is associated with Accounting standard (14/15/16).
(b) Fill in the blanks:
(i) Section __ of the Companies Act provides for liquidation of a company.
(ii) In case of holding company shares held by outsides are known as Minority Interest.
(iii) Reduction of capital is unlawful except when sanctioned by the Court under Sec. 61
(c) White true and False;
(i) Preference share cannot be redeemed unless they are fully paid up. True
(ii) Profits made by subsidiary company after the date of acquisition of shares by the holding company are treated as revenue profits. True
2. Answer the following:
(i) Distinguish between Bonus shares and Right Shares.
Ans: Bonus shares: Where company have large amount of undistributed profit and these profits are capitalised by converting them into shares and issued free of charge to the existing shareholders, such shares are known as bonus shares.
Right Issue: Rights Issue is when a listed company which proposes to issue fresh securities to its existing shareholders as on a record date. The rights are normally offered in a particular ratio to the number of securities held prior to the issue.
Difference between Bonus shares and Right issue
(a) Bonus shares are offered free of charge. Whereas, Right shares are offered at a discounted price for existing shareholders in a new share issue.
(b) Bonus shares are issued to compensate for the prevailing cash limitations. Whereas, Rights shares are issued to raise new capital for future investments.
(c) Bonus shares do not result in cash receipt. Whereas, Rights shares result in cash receipt for the company.
(ii) State the SEBI regulations relating to buy-back of share. Out of Syllabus
(iii) Write four points of distinction between Amalgamations in the Nature of purchase and purchase.
Ans: Difference between Amalgamation in the nature of purchase and Amalgamation in the nature of merger
Basis of Distinction
|
Amalgamation in the Nature of Merger
|
Amalgamation in the Nature of Purchase
|
a) Transfer of Assets and Liabilities
|
There is transfer of all assets & liabilities.
|
There need not be transfer for all assets & liabilities.
|
b) Equity Shareholder’s holding 90%
|
Equity shareholders holding 90% equity shares in transferor company become shareholders of transferee company.
|
Equity shareholders need not become shareholders of transferee company.
|
c) Purchase Consideration
|
Purchase consideration is discharged wholly by issue of equity shares (except cash for fractional shares)
|
Purchase consideration need not be discharged wholly by issue of equity shares.
|
d) Same Business
|
The same business of the transferor company is intended to be carried on by the transferee company.
|
The business of the transferor company need not be intended to be carried on by the transferee company.
|
e) Recording of Assets & Liabilities
|
The assets & liabilities taken over are recorded at their existing carrying amounts except where adjustment is required to ensure uniformity of accounting policies.
|
The assets & liabilities taken over are recorded at their existing carrying amounts or the basis of their fair values.
|
f) Recording of Reserves of Transferor Co.
|
All reserves are recorded at their existing carrying amounts and in the same form.
|
Only statutory reserves are recorded at their existing carrying amounts.
|
g) Recording of Balance of Profit & Loss A/c of Transferor
|
The balance of P&L A/c should be aggregated with the corresponding balance of the transferee co. or transferred to the General.
|
The balance of P&L A/c losses its identity and is not recorded at all.
|
(iv) Explain the steps to be following by a liquidator while preparing a liquidator’s Final Statement.
Ans: (Out of Syllabus)
CORPORATE ACCOUNTING SOLVED QUESTION PAPERS (2010 Till Date)
Also Read:
Also Read:
Ans: Preference Shares: Preference shares: Sec. 43 (b) of the Companies Act, 2013 defines preference shares as those shares which carry preferential rights as the payment of dividend at a fixed rate and as to repayment of capital in case of winding up of the company. Thus, both the preferential rights viz.
(a) Preference in payment of dividend and
(b) Preference in repayment of capital in case of winding up of the company, must attach to preference shares.
The rate of dividend on these shares is fixed and the dividend on these shares must be paid before any dividend is paid to ordinary shares. Directors, however, may decide not to pay any dividend to any class of shareholders even if there are sufficient profits. But, if any how, they decide to pay the dividend, preference shareholders will get the priority to pay the ordinary shareholders.
Conditions for redemption of Preference Shares:
Under section 55 of the Companies Act, 2013, a company should have to follow the conditions:
1. No authorization is required in the articles to redeem the preference shares of a company.
2. The redeemable preference shares must be fully paid up. If there is any partly paid share, it should be converted in to fully paid shares before redemption.
3. The redeemable preference shareholders should be paid out of undistributed profit/ distributable profit or out of fresh issue of shares for the purpose of redemption.
4. If the shares are redeemed at a premium, it should be should be provided out of securities premium or out of profits of the company.
5. The proceeds from fresh issue of debentures cannot be utilized for redemption.
6. The amount of capital reserve cannot be used for redemption of preference shares.
7. If the shares are redeemed out of undistributed profit, the nominal value of share capital, so redeemed should be transferred to Capital Redemption Reserve Account. This is also known as capitalization profit.
8. CRR may be utilised only for the purpose of issuing fully paid bonus shares to the members.
Issue of shares at Premium and purpose for which the amount of Securities Premium can be utilized:
If Shares are issued at a price, which is more than the face value of shares, it is said that the shares have been issued at a premium. The Company Act, 2013 does not place any restriction on issue of shares at a premium but the amount received, as premium has to be placed in a separate account called Securities Premium Account.
Under Section 52 of the Company Act 2013, the amount of security premium may be used only for the following purposes:
a) To write off the preliminary expenses of the company.
b) To write off the expenses, commission or discount allowed on issued of shares or debentures of the company.
c) To provide for the premium payable on redemption of redeemable preference shares or debentures of the company.
d) To issue fully paid bonus shares to the shareholders of the company.
e) In purchasing its own shares (buy back).
Or
(b) ABC Ltd issued Rs. 10,00,000 debentures on Jan 1, 2009. These were to be redeemed on 31st Dec, 2011. For this purpose, the company established a sinking fund. Investments were expected to earn 5% interest p.a. Sinking Fund Table show that 0.317208 invested actually at 5% interest amounts to 1 in three years. On 31st Dec 2011 the bank balance was 420000 before receipt of interest on sinking fund investments. On that date the investments were sold for 656000. Calculate the interest to the nearest of a rupee assuming investments are made in multiples of Rs. 100. Show the debenture account, Sinking Fund Account and sinking fund investments account in the book of the company.
Journal Entries
In the books of ABC Co. Ltd
Date
|
Particulars
|
L/F
|
Amount (Dr.)
|
Amount (Cr.)
|
1-1-09
|
Bank A/c Dr.
To Debentures A/c
(Being the Debentures issued at par)
|
10,00,000
|
10,00,000
| |
31-12-09
|
Surplus A/c Dr.
To Sinking Fund A/c
(Being the surplus transferred to Sinking Fund)
|
3,17,208
|
3,17,208
| |
31-12-09
|
Sinking Fund Investment A/c Dr.
To Bank A/c
(Being the Sinking Fund invested @ 5% p.a.)
|
3,17,200
|
3,17,200
| |
31-12-10
|
Bank A/c (3,17,210 x 5%) Dr.
To Interest on Sinking Fund Investment A/c
(Being the Interest @ 5% p.a. received on Sinking Fund Investment A/c)
|
15,860
|
15,860
| |
31-12-10
|
Surplus A/c Dr.
Interest on Sinking Fund Investment A/c Dr.
To Sinking Fund A/c
(Being the surplus and Interest on Sinking fund transferred to Sinking Fund A/c)
|
3,17,208
15,860
|
3,33,068
| |
31-12-10
|
Sinking Fund Investment A/c Dr.
To Bank A/c
(Being the Sinking Fund Invested @ 5% p.a.)
|
3,33,100
|
3,33,100
| |
31-12-11
|
Bank A/c Dr.
To Interest on Sinking Fund InvestmentA/c
(6,50,300 x 5% = 32,515)
(Being the Interest @ 5% p.a. received on Sinking Fund Investment A/c)
|
32,515
|
32,515
| |
31-12-11
|
Surplus A/c Dr.
Interest on Sinking Fund Investment A/c Dr.
To Sinking Fund A/c
(Being the surplus and Interest on Sinking fund transferred to Sinking Fund A/c)
|
3,17,208
32,515
|
3,49,723
| |
31-12-11
|
Bank A/c Dr.
To Sinking Fund Investment A/c
To Sinking Fund A/c
(Being the Sinking Fund Investment @ 5% p.a. redeemed)
|
6,56,000
|
6,50,300
5,700
| |
31-12-11
|
Debentures A/c Dr.
To Bank A/c
(Being the debentures redeemed at par)
|
10,00,000
|
10,00,000
| |
31-12-11
|
Sinking Fund A/c Dr.
To General Reserve A/c
(Being the balance of general reserve transferred to general reserve)
|
10,05,699
|
10,05,699
|
Sinking Fund A/c
Date
|
Particulars
|
Amount
|
Date
|
Particulars
|
Amount
|
31-12-09
|
To Balance c/d
|
3,17,208
|
31-12-09
|
By Surplus A/c
|
3,17,208
|
3,17,208
|
3,17,208
| ||||
31-12-10
|
To Balance c/d
|
6,50,276
|
1-1-10
31-12-10
|
By balance b/d
By Interest on Sinking Fund Investment A/c
By Surplus A/c
|
3,17,208
15,860
3,17,208
|
6,50,276
|
6,50,276
| ||||
31-12-11
|
To General Reserve A/c
|
10,05,699
|
1-1-11
|
By Balance b/d
By Interest on Sinking Fund
Investment A/c
By Surplus A/c
By Sinking Fund Investment A/c
|
6,50,276
32,575
3,17,208
5,700
|
10,05,699
|
10,05,699
|
Sinking Fund Investment A/c
Date
|
Particulars
|
Amount
|
Date
|
Particulars
|
Amount
|
31-12-09
|
To Bank A/c
|
3,17,200
|
31-12-09
|
By Balance c/d
|
3,17,200
|
3,17,200
|
3,17,200
| ||||
1-1-10
|
To Balance b/d
To Bank A/c
|
3,17,200
3,33,100
|
31-12-10
|
By balance c/d
|
6,50,300
|
6,50,300
|
6,50,300
| ||||
1-1-11
|
To Balance b/d
To Sinking Fund A/c
|
6,50,300
5,700
|
31-12-11
|
By Bank A/c
|
6,56,000
|
6,56,000
|
6,56,000
|
Debentures A/c
Date
|
Particulars
|
Amount
|
Date
|
Particulars
|
Amount
|
31-12-09
|
To Balance c/d
|
10,00,000
|
1-1-09
|
By Bank A/c
|
10,00,000
|
10,00,000
|
10,00,000
| ||||
31-12-10
|
To Balance c/d
|
10,00,000
|
1-1-10
|
By Balance b/d
|
10,00,000
|
10,00,000
|
10,00,000
| ||||
1-1-11
|
To Bank A/c
|
10,00,000
|
1-1-11
|
By Balance b/d
|
10,00,000
|
10,00,000
|
10,00,000
|
4. (a) Following is the balance sheet of P Ltd. As at 31st March, 2011:
Liabilities
|
Amount
|
Assets
|
Amount
|
Share capital:
Issued and paid up 250000 Equity Share of Rs. 10 each, 8 per share paid up
100000, 10% Pref. share of Rs 10
Reserve and Surplus:
General Reserve
Profit and Loss Account
Current Liabilities:
Creditors
Workmen’s Profit Sharing Fund
|
20,00,000
10,00,000
6,00,000
8,00,000
4,00,000
3,00,000
|
Fixed Assets:
Goodwill
Building
Plant and Machinery
Current Assets:
Stock
Sundry Debtors
Bank Balance
Miscellaneous Exp:
Preliminary Expenses
|
8,00,000
7,00,000
13,00,000
7,00,000
9,00,000
6,60,000
40,000
|
51,00,000
|
51,00,000
|
Q Ltd deicide to absorb the business of P Ltd. At the respective book value of assets and trade liabilities except Building which was valued at Rs. 1200000 and Plant & Machinery at Rs. 1000000. The purchase Consideration was payable as follows:
(i) Assumption of trade liabilities at book value.
(ii) Payment of liquidation expenses Rs. 5000 and Workmen’s Profit sharing Fund at 10% premium.
(iii) Issue of equity share of 10 each fully paid at Rs. 11 per share for every Preference share and every equity share of P Ltd and a payment of 4 per equity share in cash.
Calculate the Purchase consideration and show the Realisation Account Share Accounts in the book of P Ltd. And Opening Journal Entries in the books of Q Ltd.
Ans: Calculation of Purchase Consideration
Equity share of Q Ltd in lieu of equity shares of P Ltd:
Equity share capital (2,50,000*10)
Securities premium reserve (2,50,000*1)
Equity share of Q Ltd in lieu of preference shares of P Ltd:
Equity share capital (1,00,000*10)
Securities premium reserve (1,00,000*1)
Cash (2,50,000*4)
|
25,00,000
2,50,000
10,00,000
1,00,000
10,00,000
|
Purchase Consideration
|
48,50,000
|
Realisation Account
Particulars
|
Amount
|
Particulars
|
Amount
|
To Goodwill
To Building
To Plant and Machinery
To Stock
To Sundry Debtors
To Bank Balance
To Premium on redemption of P/S
To Equity share capital
|
8,00,000
7,00,000
13,00,000
7,00,000
9,00,000
6,60,000
1,00,000
3,90,000
|
By Creditors
By Working Profit Sharing fund
By Q Ltd. (Purchase Consideration)
|
4,00,000
3,00,000
48,50,000
|
55,50,000
|
55,50,000
|
Journal Entries
In the books of P Ltd.
Particulars
|
L/F
|
Amount
|
Amount
|
Business Purchase A/c Dr.
To Liquidator of P Ltd.
(Being the purchase consideration agreed to be paid to the liquidator of P Ltd)
|
48,50,000
|
48,50,000
| |
Building A/c Dr.
Plant & Machinery A/c Dr.
Stock A/c Dr.
Sundry Debt Dr.
Cash at Bank A/c Dr.
Goodwill A/c Dr.
To Creditors A/c
To Workman profit sharing fund A/c
To Business Purchase A/c
(Being the various assets and liabilities of P Ltd. taken over and balance is transferred to goodwill account)
|
12,00,000
10,00,000
7,00,000
9,00,000
6,60,000
3,20,000
|
4,00,000
3,30,000
48,50,000
| |
Goodwill A/c Dr.
To Bank A/c
(Being the liquidation expenses paid)
| |||
Liquidator of P Ltd. A/c Dr.
To Equity Share Capital A/c
To Securities Premium reserve A/c
To Bank A/c
(Being the 1,35,000 equity shares issued @ Rs.10 each to discharge the purchase consideration)
|
48,50,000
|
35,00,000
3,50,000
10,000
|
For Solutions Click Here:
Or
(b) In what ways can a company alter its share capital? State the procedure is to be follow by a company for reducing share capital. Also explain the cases where procedure of reduction of capital is not called for.
Ans: Internal Reconstruction: Internal reconstruction means a recourse undertaken to make necessary changes in the capital structure of a company without liquidating the existing company. In internal reconstruction neither the existing company is liquidated, nor is a new company incorporated. It is a scheme in which efforts are made to bail out the company from losses and put it in profitable position. Internal reconstruction of a company is done through the reorganization of its share capital. It is a scheme of reorganization in which all interested parties in the capital structure volunteer to sacrifice. They are the company’s shareholders, debenture holders, creditors etc. Under internal reconstruction, the accumulated trading losses and fictitious assets are written off against the sacrifice made by these interest holders in the form of reduction of paid up value of their interest.
Differences between Internal Reconstruction and External Reconstruction
a. No new company is formed in case of Internal Reconstruction. A new company is formed in case of External Reconstruction.
b. In case of Internal Reconstruction, no company is liquidated. In case of External Reconstruction one company is liquidated
c. Internal Reconstruction requires court’s confirmation. But External Reconstruction can be affected without court’s confirmation
d. Internal Reconstruction is a slow and tedious process. But External Reconstruction can be carried out easily
e. In the case of Internal Reconstruction, the company is able to set off its past losses against future profits. Whereas, in the case of External Reconstruction, the past losses of the old company can’t be set off against the future profits of the new company.
Forms of Internal reconstruction of a company (Scope of Internal reconstruction)
Internal reconstruction of a company can be carried out in the following different ways. These are as under:
(A) Alteration of Share Capital; and
(B) Reduction in Share Capital
Alteration of Share Capital: Memorandum of Association contains capital clause of a company. Under Section 61 of the Companies Act 2013, a company, limited by shares, can alter this capital clause, if is permitted by (i) the Articles of Association of the company; and (ii) if a resolution to this effect is passed by the company in the general meeting. A company can alter share capital in any of the following ways:
(a) The company may increase its capital by issuing new shares.
(b) It may consolidate the whole or any part of its share capital into shares of larger amount.
(c) It may convert shares into stock or vice versa.
(d) It may sub-divide the whole or any part of its share capital into shares of smaller amount.
(e) It may cancel those shares which have not been taken up and reduce its capital accordingly.
To alter capital by any of the above modes require a resolution at a general meeting, but does not require confirmation by the National Company Law Tribunal. The company is required to give a notice to the Registrar within thirty days of alteration.
The accounting treatment of the above five types of capital alteration is discussed below.
(a) If the company has issued all of its authorised capital, then, for the purpose of raising fund by the issue of fresh shares, it will have to increase its authorised capital first. For increasing the authorised capital, the Capital clause of Memorandum of Association of the company is required to be altered and permission of S.E.B.I. is also required to be obtained. No accounting entry is necessary for increasing authorised share capital. The company will have to observe the formalities prescribed under the Companies Act, 2013.
(b) The company may decide to change the shares of smaller denomination into larger denomination. This process is called consolidation of shares. On account of consolidation, the total amount of capital of the company will not change but the number of shares will decrease.
(c) A company, in order to alter its share capital, may convert all or any of its fully paid up shares into Stock or Stock into fully paid up shares. In case, shares are converted into Stock, the members get a part of Stock Capital in place of shares. By converting Shares into Stock, any amount of Stock Capital can be transferred to any other person.
(d) When the shares of a company are sub-divided in shares of small value, it is known as sub-division of shares. In sub-division of shares, the face value of a share is converted into smaller denomination from larger denomination. The total capital of the company remains unaffected by sub-division but the total number of shares increase.
(e) Cancellation of capital may take the following form:
(i) Cancellation of unissued capital; and
(ii) Cancellation of uncalled capital.
(i) Cancellation of unissued capital: Cancellation of unissued capital means cancellation of unissued shares by a company. It means that the part of the authorised capital which has not yet been issued to the public may be cancelled by the company.
(ii) Cancellation of uncalled capital: Cancellation of uncalled capital means cancellation of that part of the face value of the share which has not yet been called by the company.
Reduction of Capital: Sometimes there may be a genuine necessity for the reduction of capital. This power is, given by Section 66 of the Companies Act, 2013, subject to the compliance of conditions. According to this, a company may,
(1) Extinguish or reduce the liability on any of its shares in respect of share capital not paid up
(2) cancel any paid-up share capital which is lost or is unrepresented by any available assets;
(3) pay off any paid-up share capital which is in excess of what is required by the company. Conditions for effecting a reduction
Following conditions are required to be fulfilled by a company to reduce its share capital –
(a) The Articles of Association of the company must permit it to reduce its capital;
(b) The company in general meeting shall pass a special resolution to reduce its capital; and
(c) The approval of National Company Law Tribunal (previously Court) shall be obtained for the scheme of reduction in share capital.
5. (a) Assam Air Product Ltd went into voluntary liquidation on 31 Dec 2011 when their Balance Sheet was as Follows:
Liabilities
|
Amount
|
Assets
|
Amount
|
Issued and Subscribed Capital:
10000, 10% Cumulative Preference
Shares of Rs. 100 each fully Paid
5000 Equity Shares of Rs. 100 each, 75 paid
15000 Equity Shares of Rs. 100 each, 60 paid
15% Debentures secured by a floating charge
Interest outstanding on Debentures
Creditors
|
1000000
375000
900000
500000
75000
637500
|
Land and Buildings
Machinery and Plant
Patents
Stock
Sundry Debtors
Cash at Bank
Profit and Loss A/c
|
500000
1250000
200000
275000
550000
150000
562500
|
3487500
|
3487500
|
Preference dividends were in arrears for 2 years and the Creditors included Preferential Creditors of Rs. 76000. The assets realised as follows:
Land and building - 600000, Machinery and Plant – 1000000, Patents – 150000, Stock – 300000, Sundry debtors – 400000.
The expenses of liquidation amounted to Rs. 545000. The liquidator is entitled to a commission of 3% on assets realized except cash. Assuming the final payments including those on debentures are made on 31st March 2012, show Liquidator’s Final Statement of Account.
Or
(b) Write notes on the followings: out of syllabus
(i) Preferential creditors
(ii) Voluntary winding-up of a company
(iii) Order of payment followed by a liquidator for settlement of various claims
6. (a) Define a holding company. What is minority interest and how is it calculated? Give four examples of transactions which must be eliminated while preparing Consolidated Balance Sheet.
Ans: Holding Company: As per Section 2(46) “holding company”, in relation to one or more other companies, means a company of which such companies are subsidiary companies. According to this section, one company can become the holding company of another in any of the following three ways:
1. By holding more than 50% of nominal value of the equity shares of the other company i.e. the holding company holds the majority of voting power in the subsidiary company.
2. By controlling the composition of the Board of Directors of the other company so that the holding company is able to appoint or remove the directors of the subsidiary company.
3. By controlling a holding company which controls another subsidiary or subsidiaries. For example, if B Ltd is a Subsidiary of C Ltd & C Ltd is a subsidiary of A Ltd then B Ltd is also deemed to be a subsidiary of A Ltd.
Minority Interest: When some of the shares in the subsidiary are held by outside shareholders they will be entitled to a proportionate share in the assets and liabilities of that company. The share of the outsider in the subsidiary is called minority interest.
Amount of minority interest is calculated by adding subsidiary company’s share in pre-acquisition profit, post-acquisition profit and in share capital of the company. Preference share capital to the extent of not purchased by holding company is also added with minority interest. In the consolidated balance sheet all the assets and liabilities of the subsidiary are consolidated with assets and liabilities of the holding company and the minority interest representing the interest of the outsider in the subsidiary is shown as a liability.
Inter-Company Balances must be eliminated from consolidated balance sheet
1. Inter-company sales: When goods are sold by holding company to its subsidiary or vice-versa then such amount is appeared in the balance sheet of one company as debtors and as creditors in the balance sheet of other company. These transactions should be eliminated from the consolidated balance sheet by deducting both from debtors and creditors.
2. Bills of Exchange: Bills drawn by the holding company on its subsidiary and vice versa appearing as bills payable in one balance sheet and bills receivables on the other. Such transactions should be eliminated from the consolidated balance sheet. However bills discounted cannot get cancelled because of the liability in respect of bills payable by the accepting company and a contingent liability in the company getting the bills discounted.
a. The company discounting the bill will include the proceeds of the bills in its bank balance and will appear as a note to show the contingent liability.
b. In the consolidated balance sheet the total of bills discounted appear as bills payable representing actual liabilities.
3. Inter-company Debts: When loans are advanced to the subsidiary company by the holding and vice versa the same will appear on the asset side of the lending company’s balance sheet and on the liability side of the borrowing company’s balance sheet. These being inter-company items they should be eliminated from the consolidated balance sheet.
4. Debentures: Debentures issued by one of the companies in the group and held as investment by another in the same group gets cancelled in the consolidated balance sheet and should be eliminated.
Or
(b) Balance Sheet of A Ltd. And its subsidiary B Ltd. On 31st March, 2010 were as under:
Liabilities
|
A Ltd.
|
B Ltd
|
Assets
|
A Ltd.
|
B Ltd.
|
Share Capital:
Equity Share of Rs. 10 each Fully Paid
General Reserve on 1.4.2009
Profit and Loss on 1.4.2009
Profit for the year ended 31.3.2010
Bills payable
Creditors
Bank Overdraft
|
2000000
300000
400000
500000
150000
300000
200000
|
500000
100000
200000
250000
---------
300000
--------
|
Land and Building
Plant and Machinery
Fixture and Furniture
30000 Shares in B Ltd. at Cost
Stock
Debtors
Cash in Hand
Bills Receivable
|
600000
2000000
90000
650000
400000
100000
100000
--------
|
--------
--------
100000
--------
750000
280000
20000
200000
|
3850000
|
1350000
|
3850000
|
1350000
|
30000 Shares in B Ltd. Were acquired by A Ltd. On 1st October, 2009. Bills Receivable held by B Ltd is a sum of 60000 owing by A ltd in respect of goods supplied by B Ltd. Contingent Liability for bill discounted by B Ltd. is Rs. 25000. You are required to prepare a Consolidated Balance Sheet of a Ltd. With its subsidiary B Ltd. As at 31st March, 2010.
