37. Holding Company [D98-J14] [27.02.2014]

Financial Accounting 6.1

HOLDING COMPANIES

Section The Companies Act, 2014

19(1) Subsidiary company not to hold shares in its holding company.

No company shall, either by itself or through its nominees, hold any shares in its holding

company and no holding company shall allot or transfer its shares to any of its subsidiary

companies and any such allotment or transfer of shares of a company to its subsidiary

company shall be void:

Provided that nothing in this sub-section shall apply to a case

19(1)(a) where the subsidiary company holds such shares as the legal representative of a deceased

member of the holding company; or

19(1)(b) where the subsidiary company holds such shares as a trustee; or

19(1)(c) where the subsidiary company is a shareholder even before it became a subsidiary

company of the holding company:

Provided further that the subsidiary company referred to in the preceding proviso shall

have a right to vote at a meeting of the holding company only in respect of the shares held

by it as a legal representative or as a trustee, as referred to in clause (a) or clause (b) of the

said proviso.

19(2) The reference in this section to the shares of a holding company which is a company limited

by guarantee or an unlimited company, not having a share capital, shall be construed as a

reference to the interest of its members, whatever be the form of interest.

Consolidated Financial Statements of Group Companies

BASIC CONCEPTS

Question: Write a note on Holding Company and Subsidiary Company.

Answer:

Section The Companies Act, 2014

2(46) 2(46) holding company, in relation to one or more other companies, means a company of

which such companies are subsidiary companies;

2(87) (87) subsidiary company or subsidiary, in relation to any other company (that is to say

the holding company), means a company in which the holding company

2(87)(i) (i) controls the composition of the Board of Directors; or


2(87)(ii) (ii) exercises or controls more than one-half of the total share capital either at its own or

together with one or more of its subsidiary companies:

Provided that such class or classes of holding companies as may be prescribed shall not

have layers of subsidiaries beyond such numbers as may be prescribed.

Explanation.For the purposes of this clause,

(a) a company shall be deemed to be a subsidiary company of the holding company even if

the control referred to in sub-clause (i) or sub-clause (ii) is of another subsidiary company

of the holding company;

(b) the composition of a companys Board of Directors shall be deemed to be controlled by

another company if that other company by exercise of some power exercisable by it at its

discretion can appoint or remove all or a majority of the directors;

(c) the expression company includes any body-corporate;

(d) layer in relation to a holding company means its subsidiary or subsidiaries;

In a wholly owned subsidiary, there is no minority interest because all the shares with voting

rights are held by the holding company.

Consolidated financial statements are prepared and presented by a parent/holding enterprise to

provide financial information about a parent and its subsidiary(ies) as a single economic entity.

Distinction must be made from the point of view of the holding company, between revenue and

capital profit of the subsidiary. In the absence of information, profits of a year may be treated as

accruing from day to day

Consolidation procedures

In preparing the consolidated financial statements, the following steps are taken:

the carrying amount of the parents investment in each subsidiary and the parents portion of

equity of each subsidiary are eliminated.

In case cost of acquisition exceeds or is less than the acquirers interest, goodwill or capital

reserve is calculated retrospectively.

intragroup transactions, including sales, expenses and dividends, are eliminated, in full;

unrealised profits resulting from intragroup transactions that are included in the carrying

amount of assets, such as inventory and fixed assets, are eliminated in full;

unrealised losses resulting from intragroup transactions that are deducted in arriving at the

carrying amount of assets are also eliminated unless cost cannot be recovered;

minority interest in the net income of consolidated subsidiaries for the reporting period are

identified and adjusted against the income of the group in order to arrive at the net income

attributable to the owners of the parent; and

minority interests in the net assets of consolidated subsidiaries are identified and presented in

the consolidated balance sheet separately from liabilities and the parent shareholders equity.

If the controlling interest was acquired during the course of a year, profit for that year must be

apportioned into the pre-acquisition and post-acquisition portions, on the basis of time in the

absence of information on the point.

the financial statements of the parent and its subsidiaries are combined on a line by line basis by

adding together like items of assets, liabilities, equity, income and expenses.

Dividend received from a subsidiary company, must be distinguished between the part received

out of capital profits and that out of revenue profits - the former is credited to Investment Account,

it being a capital receipt, and the latter is adjusted as revenue income for being credited to the

Profit & Loss Account.


In respect of such goods not yet sold, the unrealised profits are to be eliminated in full. This may

be done by creating a reserve in respect of total unrealised profit which has not yet been realised.

Also, unrealised losses resulting from intragroup transactions should also be eliminated unless

cost cannot be recovered.

Preparation of Consolidated Profit and Loss Account

All the revenue items are to be added on line by line basis and from the consolidated revenue

items inter-company transactions should be eliminated.

If there remains any unrealised profit in the stock of good, of any of the Group Company, such

unrealised profit is to be eliminated from the value of stock to arrive at the consolidated profit.

Also it is necessary to eliminate the share of holding company in the proposed dividend of the

subsidiary.

Preparation of Consolidated Cash Flow Statement

All the items of Cash flow from operating activities, investing activities and financing activities

are to be added on line by line basis and from the consolidated items, intercompany transactions

should be eliminated.

Treatment of Investment in Associates in Consolidated Financial Statements

An enterprise that presents consolidated financial statements should account for investments in

associates in the consolidated financial statements in accordance with the Accounting Standard

(AS) 23.

Accounting for Associates (AS 23)

AS 23 suggests equity method of accounting for investments in associates.

Under equity method The following procedure should be followed:

Investment is initially recorded at cost. Subsequently, the carrying amount is increased on the

basis of share of profit or decreased on the basis of share of loss in the associate.

Step (1): Find out value of investments on the basis of proportionate value of net assets of the

investee;

Step (2): Find out goodwill or capital reserve arising out of the purchase consideration.

If the purchase price is above the value of investments determined in step (1) then there is

goodwill and

if the purchase price is less than the value of the investments determined in step (1) then there is

capital reserve.

Step (3): Goodwill or capital reserve as determined in step (2) should be included in the carrying

amount of the investments with a separate disclosure. On the contrary, investments are recognised

at purchase price as per AS 13 without disclosing goodwill/capital reserve.

DISCLOSURE-Goodwill/capital reserve can be disclosed within bracket below the

Investments in Associates in the following style and accumulated income which was not earlier

recognized should be added to value of investments for first time consolidation with

corresponding credit to consolidated reserve.

Equity method is not applicable

(1) when an investment is acquired for the purpose of disposal in the near future, i.e., as short term

investments; and

(2) there is severe long term restriction on fund transfer by the associate to the investor. In these

two cases AS 13 should be applied.

Treatment of Investment in Joint Ventures in Consolidated Financial Statements (AS 27)

AS 27 identifies three broad types of Joint Ventures- jointly controlled operations, jointly

controlled assets and jointly controlled entities.

Jointly Controlled Operations


In respect of its interests in jointly controlled operations, a venturer should recognise in its

separate financial statements and consequently in its consolidated financial statements:

(a) the assets that it controls and the liabilities that it incurs; and

(b) the expenses that it incurs and its share of the income that it earns from the joint venture.

Jointly Controlled Assets

In respect of its interest in jointly controlled assets, a venturer should recognise, in its separate

financial statements, and consequently in its consolidated financial statements:

(a) its share of the jointly controlled assets, classified according to the nature of the assets;

(b) any liabilities which it has incurred;

(c) its share of any liabilities incurred jointly with the other venturers in relation to the joint

venture;

(d) any income from the sale or use of its share of the output of the joint venture, together with its

share of any expenses incurred by the joint venture; and

(e) any expenses which it has incurred in respect of its interest in the joint venture.

Jointly Controlled Entities: A jointly controlled entity maintains its own accounting records and

prepares and presents financial statements in the same way as other enterprises in conformity with

the requirements of AS 27 applicable to that jointly controlled entity.

Separate Financial Statements of a Venturer

In a venturer's separate financial statements, interest in a jointly controlled entity should be

accounted for as an investment in accordance with Accounting Standard (AS) 13.

Consolidated Financial Statements of a Venturer

In its consolidated financial statements, a venturer should report its interest in a jointly controlled

entity using proportionate consolidation except

(a) an interest in a jointly controlled entity which is acquired and held exclusively with a view to

its subsequent disposal in the near future; and

(b) an interest in a jointly controlled entity which operates under severe long-term restrictions that

significantly impair its ability to transfer funds to the venturer.

Question: What are holding company and subsidiary company?

Answer: A holding company is one which holds 51% or more of the shares in another company

(subsidiary company). For example, A Ltd holds 75% of shares in B Ltd., and B Ltd., holds 80% of

shares in C Ltd. Here A Ltd., has two subsidiaries (subsidiary company of a subsidiary is also a

subsidiary of holding company). It is mandatory to consolidates the accounts of subsidiary company

with its holding company and reported to the shareholders

(1) Calculation of ratio of shares held by holding company and outsiders

Share of Holding Company

%

Minority Interest

%

(2) Total Capital

Profit

Revenue

Profit

H Co. S Co.

CP RP CP RP

1 General Reserve

2 Capital Reserve

3 Profit or Loss

4 Over (Under) Valuation of Assets


5 Change in Depreciation

(3) Cost of Control (4) MI

Cost of Acquisition

1 Book Value

2 Capital Profit

3 Bonus Shares

4 Pre-acquisition Dividend

Goodwill (Capital Reserve)

Revenue Profit

Minority Interest

[CMA FINAL J04& D05, 2 Marks]

Question: What entries would you make in holding companys accounts to record dividend received

from a subsidiarys pre-acquisition profits?

Answer:

Journal Entry In the books of Holding Company

Date particular Amount Amount

Bank A/c Dr. xxxx

To Investment in Subsidiary A/c xxxx

(Being Dividend received from subsidiarys pre-acquisition profit)

[CMA FINAL D04, 2 Marks]

Question: How is cost of control computed when an interest in subsidiary company is acquired in

blocks over a period of time?

Answer: When interest in a subsidiary company is acquired in blocks, the cost of control or goodwill

is computed as if all the blocks are purchased on the date when a control is achieved. However if

shares are required in major blocks, then for each block Analysis of profit will be computed after

considering the dates of acquisition.

PRACTICAL QUESTIONS

[Basic Sum]

Question: Consolidate the following Balance Sheet:

Particulars Note

No.

H Ltd S Ltd

I EQUITY AND LIABILITIES

(1) Shareholders funds

(a) Equity Share of 1 each 1,400 1,000

(b) Reserves and surplus - 300

(2) Current liabilities [Creditors] - 500

Total 1,400 1,800

II ASSETS

(1) Non-current assets


Fixed Assets [Investments in 900 shares in S Ltd.,] 1,200

(2) Sundry assets 200 1,800

Total 1,400 1,800

When H Ltd acquired shares in S Ltd the profit and loss in the later had a credit balance of 200

Answer:



%

900

1,000% 90%

Minority Interest

%

100

1,000% 10%

(2) Total Capital

Profit

Revenue

Profit

H Co.[90%] S Co.[10%]

CP RP CP RP

1 Profit or Loss 300 200 100 180 90 20 10

(3) Cost of Control (4) MI

Cost of Acquisition 1,200

1 Book Value 900 100

2 Capital Profit 180 20

3 Bonus Shares

4 Pre-acquisition Dividend

5 Over (Under) Valuation of Assets 1,080

Goodwill (Capital Reserve) 120

Revenue Profit 20 10

Minority Interest 130

Consolidated Balance Sheet of H Co. Ltd H Co. S Co. Cons.

(a) Share capital 1,400

(b) Reserves and surplus: Profit and Loss A/c 90 90

(c) Minority Interest 130

(4) Current liabilities [Creditors] Nil 500 500

Total 2,120

II ASSETS


(a) Fixed assets 200 1,800 2,000

(b) Intangible assets [Goodwill] 120

(2) Current assets

Total 2,120

Stock Reserve: When holding or subsidiary company purchased or sold goods at invoice price (with

profit) mutually, the profit Element on the unsold stock held on the balance sheet date should be

eliminated from profit and loss account in step 6and from stock in the balance sheet.


[Wholly owned subsidiary company | Unrealized profit on unsold stock]

Question: Following are the Balance sheet of R Ltd and S Ltd as at 31.12.1994:

Particulars Note

No.

R Ltd S Ltd



(a) Equity Share of 10 each 4,00,000 1,50,000

(b) Reserves and surplus 1 80,000 65,000

(2) Non-current liabilities [12% Debenture] 2,00,000 -

(3) Current liabilities 3,20,000 2,85,000

Total 10,00,000 5,00,000

II ASSETS


Fixed Assets 5,00,000 2,40,000

Investments in 15,000 shares in S Ltd., on 1.1.94 2,00,000 -

(2) Current assets

[including 10,000 stock purchased from R Ltd]

3,00,000 2,60,000

Total 10,00,000 5,00,000

1 Reserves and Surplus R Ltd S Ltd

General Reserve 50,000 40,000

Profit and Loss A/c 30,000 25,000

80,000 65,000

Prepare a consolidated balance sheet as at 31.12.94 assuming that:

1. S Ltd general reserve and profit and loss account stood at 25000 and 10000 respectively on

1.1.1994

2. R Ltd. sells goods at profit of 25% on cost.

Answer:



%

15,000

15,000% 100%

Minority Interest

%

0

15,000% 0%

(2) Total Capital

Profit

Revenue

Profit

H Co.[100%] S Co.[0%]

CP RP CP RP

1 Profit or Loss 25,000 10,000 15,000 10,000 15,000 - -

2 General Reserve 40,000 25,000 15,000 25,000 15,000 - -

Total 65,000 35,000 30,000 35,000 30,000 - -

(3) Unrealised Profit on Unsold Stocks H Co.

Proportion of unsold stock Profit % 10,000 25

125% 2,000 Debit Profit and Loss A/c

Credit Stock in Trade A/c


(4) Cost of Control

Cost of Acquisition 2,00,000

1 Book Value 1,50,000

2 Capital Profit 35,000 1,85,000

Goodwill (Capital Reserve) 15,000

Consolidated Balance Sheet of H Co. Ltd Note H Co. S Co. Cons.



(a) Share capital 4,00,000

(b) Reserves and surplus: Profit and Loss A/c 1 1,08,000

(3) Non-current liabilities [12% Debentures] 2,00,000 - 2,00,000

(4) Current liabilities [Creditors] 3,20,000 2,85,000 6,05,000

Total 13,13,000

II ASSETS


(a) Intangible assets [Goodwill] 15,000 15,000

(b) Fixed assets 5,00,000 2,40,000 7,40,000

(2) Current assets 3,00,000 2,60,000 5,58,000

Less: [Unrealised profit on unsold stock] (2,000)

Total 13,13,000

1 Reserves and Surplus R Ltd S Ltd Consol.

General Reserve 50,000 15,000 65,000

Profit and Loss A/c 30,000 15,000 45,000

80,000 1,10,000

Unrealised profit on unsold stock 2,000

Total 1,08,000

[Inter-company Owings | Unrealized Profit on Unsold Stock]

Question:

Particulars Note

No.

H Ltd S Ltd




(b) Reserves and surplus 1 3,50,000 1,00,000

(2) Non-current liabilities [12% Debenture] 2 - 1,20,000

(3) Current liabilities 3 1,50,000 80,000

Total 10,00,000 5,00,000


II ASSETS


(a) Intangible Assets [Goodwill] 1,00,000 -

(b) Tangible Assets 4 3,50,000 1,50,000

(c) Investments 2,50,000 50,000

(2) Current assets 5 3,00,000 2,00,000

Total 10,00,000 5,00,000

Note: Liability of bills discounted of H Ltd is 20000

1 Reserves and Surplus H Ltd S Ltd

General Reserve 2,00,000 60,000

Profit and Loss A/c 1,50,000 50,000

Preliminary Expenses - (10,000)

3,50,000 1,00,000

2 Non-current Liabilities

Secured Loan - 80,000

Unsecured Loan - 40,000

- 1,20,000

3 Current Liabilities

Creditors 1,00,000 60,000

Bills Payable 50,000 20,000

1,50,000 80,000

4 Non-current Assets

Plant and Machinery 2,00,000 1,20,000

Building 1,50,000 1,30,000

3,50,000 2,50,000


Stock 80,000 50,000

Debtors 100,000 40,000

Bills receivable 50,000

Bank 20,000 80,000

Cash 50,000 30,000

3,00,000 2,00,000

1. H Ltd acquired 16,000 shares of 10 each is S Ltd., on 1.4.2000 at a cost of 2,00,000.Balance sheet

of S ltd on 1.4.2000 showed balance in general reserve of 20,000 and profit and loss a/c 20,000

(credit)

2. Bills payable of S Ltd include 10,000 due to H Ltd., which has discounted bills worth of 6,000

3. Sundry creditors of H Ltd., include 20,000 due to S Ltd.

4. Closing stock of H Ltd., includes a stock worth of 60,000 supplied by S Ltd., which had invoiced

to H Ltd at cost plus 20%.

Prepare consolidated balance sheet.

Answer:




%

16,000

20,000% 80%

Minority Interest

%

4,000

20,000% 20%

(2) Total Capital

Profit

Revenue

Profit

H Co.[80%] S Co.[20%]

CP RP CP RP

1 General Reserve 60,000 20,000 40,000 16,000 32,000 4,000 8,000

2 Profit and Loss A/c 50,000 20,000 30,000 16,000 24,000 4,000 6,000

3 Preliminary Expenses (10,000) (10,000) - (8,000) - (2,000) -

Total 1,00,000 30,000 70,000 24,000 56,000 6,000 14,000

(3) Cost of Control (4) Minority Interest

Cost of Acquisition 2,00,000 Book Value 40,000

1 Book Value 1,60,000 Capital Profit 6,000

2 Capital Profit 24,000 1,84,000 Revenue Profit 14,000

Goodwill 16,000 Minority Interest 60,000

(5) Unrealised Profit on Unsold Stocks [Downstream] H Co.

Proportion of unsold stock Profit % 60,000 20



(6) Consolidated Balance Sheet of H Co. Ltd Note H Co. S Co. Cons.



(a) Share capital 5,00,000 - 5,00,000

(b) Reserves and surplus: Profit and Loss A/c 1 3,96,000

(c) Minority Interest 60,000

(3) Non-current liabilities 2 1,20,000

(4) Current liabilities [Creditors] 3 2,06,000

Total 12,82,000

II ASSETS


(a) Intangible Assets [Goodwill] 1,00,000 16,000 1,16,000

(b) Tangible Assets 4 3,50,000 2,50,000 6,00,000

(c) Investments 50,000 50,000 1,00,000

(2) Current assets 5 4,66,000

Total 12,82,000

Note: Liability of bills discounted of H Ltd is 14,000 [20,000 less inter-company owings]

1 Reserves and Surplus R Ltd S Ltd Consol

General Reserve 2,00,000 32,000 2,32,000


Profit and Loss A/c 1,50,000 24,000 1,74,000

3,50,000 56,000 4,06,000

Less Unrealized Profit on unsold stocks 10,000

3,96,000

2 Non-current Liabilities

Secured Loan - 80,000 80,000

Unsecured Loan - 40,000 40,000

- 1,20,000 1,20,000


Creditors 1,00,000 60,000 1,60,000

Bills Payable 50,000 20,000 70,000

1,50,000 80,000 2,30,000

Inter-company Owings

Less Creditors of S Ltd 20,000

Less Bills Payable 4,000

2,06,000


Plant and Machinery 2,00,000 1,20,000 3,20,000

Building 1,50,000 1,30,000 2,80,000

3,50,000 2,50,000 6,00,000


Stock 80,000 50,000 1,30,000

Less Unrealised profit on unsold stock (10,000)

Debtors 100,000 40,000 1,40,000

Less Inter-company Owings (20,000)

Bills receivable 50,000 - 50,000

Less Inter-company Owings (4,000)

Bank 20,000 80,000 1,00,000

Cash 50,000 30,000 80,000

4,66,000

[CMA FINAL SY12, D13, 10 Marks]

Question: On 31.03.2011, A Ltd. acquired 1,05,000 shares of B Ltd. for 12,00,000. The Balance Sheet

of B Ltd. as on that date was as under:

The Balance Sheet of B Ltd. as on 31.03.2011 Note in 000



(a) Share capital of 10 each, fully paid up 1,500

(b) Reserves and surplus

Securities Premium -

Pre-incorporation profits 30

Profit and Loss A/c 60


(2) Current liabilities [Trade Payables] 75

Total 1,665

II ASSETS

(1) Non-current assets [Tangible Assets] 1,050

(2) Current assets 615

Total 1,665

The B/Ss of A Ltd and B Ltd as on 31.03.2012 Note A Ltd B Ltd



(a) Share capital of 10 each [before bonus shares] 4,500 1,500


Securities Premium 900 -

Pre-incorporation Profits - 30

General Reserve 6,000 1,905

Profit and Loss A/c 1,575 420

(2) Current liabilities [Trade Payables] 555 210

Total 13,530 4,065

II ASSETS


(a) Tangible Assets 7,920 2,310

(b) Investments in B Ltd at cost 1,200 -

(2) Current assets 4,410 1,755

Total 13,530 4,065

Directors of B Ltd. made a bonus issue on 31.03.2012 in the ratio of one equity share of 10 each fully

paid for every two equity shares held on that date.

Calculate as on 3.03.2012 the following:

Cost of Control / Capital Reserve

Minority Interest

Consolidated Profit and Loss Account in each of the following cases

o Before Issue of Bonus Shares

o Immediately after the Issue of Bonus Shares

It may be assumed that Bonus Shares were issued out of Post-Acquisition Profits by using General

Reserve.

Answer:



%

1,05,000

1,50,000% 70%

Minority Interest

%

45,000

1,50,000% 30%

(2) Before Bonus Shares Total Capital

Profit

Revenue

Profit

A Ltd [70%] B Ltd [30%]

CP RP CP RP


1 Profit or Loss 420 60 360 42 252.0 18 108.0

2 General Reserve 1,905 - 1,905 1,333.5 571.5

3 Pre-incorporation Profits 30 30 - 21 9

Total 2,355 90 2,265 63 1,585.5 27 679.5

(3) After Bonus Shares Total Capital

Profit

Revenue

Profit

A Ltd [70%] B Ltd [30%]

CP RP CP RP

1 Profit or Loss 420 60 360 42 252.0 18 108.0

2 General Reserve after Bonus 1,155 - 1,155 - 808.5 346.5

3 Pre-incorporation Profits 30 30 - 21 9

Total 1,605 90 1,515 63 1,060,.5 27 454.5

4 Bonus Shares 750 750 525 225

Before Bonus Shares


Cost of Acquisition 1,200 Book Value 450.0

1 Book Value 1,050 Capital Profit(2) 27.0

2 Capital Profit(2) 63 1,113 Revenue Profit(2) 679.5

Goodwill 87 Minority Interest 1,156.5

Before Bonus Shares


Cost of Acquisition 1,200 Book Value 450.0

1 Book Value 1,050 Capital Profit(3) 27.0

2 Capital Profit(3) 63 Revenue Profit(3) 454.5

3 Bonus Shares 525 1,638 Bonus Shares 225.0

Capital Reserve 438 Minority Interest 1,156.5

Before Bonus Shares After Bonus Shares

1 Reserves and surplus A Ltd B Ltd Total A Ltd B Ltd Total

Securities Premium 900.0 - 900.0 900.0 - 900.0

Pre-incorporation Profit - -

Capital Reserve 438.0

General Reserve 6,000.0 1,333.5 7,333.5 6,000.0 808.5 6,808.5

Profit and Loss A/c 1,575.0 252.0 1,827.0 1,575.0 252.0 1,827.0

[Bonus Shares Out of Post-acquisition Profit]

Question: H Ltd., acquired, 2000 equity shares of 100 each from S Ltd., on 31st March 2000.The

summarized Balance Sheet of the companies as on 31 March 2001 were as follows:

Particulars Note

No.

H Ltd S Ltd






Reserves 3,00,000 50,000

Profit and Loss A/c 1,00,000 1,00,000

(2) Current liabilities 2,00,000 50,000

Total 14,00,000 4,50,000

II ASSETS


(a) Tangible Assets [Fixed Assets] 7,00,000 2,50,000

(b) Investments [2,000 shares in S Ltd at cost] 3,00,000

(2) Current assets 4,00,000 2,00,000

Total 14,00,000 4,50,000

S Ltd., had a credit balance of 50,000 in the reserve and 20,000 in profit and loss account when H

Ltd acquired shares in S Ltd. S Ltd issued bonus shares in the ratio of one for every five shares held

out of the profits earned during 2000-2001. This is not shown in the above balance sheet of S Ltd.

Prepare a consolidated balance sheet of H Ltd., and its subsidiary on 31 March 2001 giving all

necessary working.

Answer:



%

2,000

2,500% 80%

Minority Interest

%

500

2,500% 20%

(2) Total Capital

Profit

Revenue

Profit

H Co.[80%] S Co.[20%]

CP RP CP RP

1 Profit or Loss(3) 50,000 20,000 30,000 16,000 24,000 4,000 6,000

2 General Reserve 50,000 50,000 - 40,000 - 10,000 -

Total 1,00,000 70,000 30,000 56,000 24,000 14,000 6,000

(3) H Co.[80%] S Co.[20%]

Profit or Loss 1,00,000

Less Bonus Shares 50,000 40,000 10,000

Profit or Loss 50,000



1 Book Value 2,00,000 Capital Profit 14,000

2 Capital Profit 56,000 Revenue Profit 6,000

3 Bonus Shares 40,000 296,000 Bonus Shares 10,000

Goodwill 4,000 Minority Interest 80,000

(6) Consolidated Balance Sheet of H Co. Ltd Note H Ltd S Ltd Consol.


I EQUITY AND LIABILITIES No.


(a) Equity Share of 100 each 8,00,000 - 8,00,000


Reserves 3,00,000 - 3,00,000



(2) Current liabilities 2,00,000 50,000 2,50,000

Total 15,54,000

II ASSETS


(a) Intangible Assets [Goodwill] - - 4,000

(b) Tangible Assets [Fixed Assets] 7,00,000 2,50,000 9,50,000

(2) Current assets 4,00,000 2,00,000 6,00,000

Total 15,54,000

Revaluation of assets: Increase in value is capital profit therefore it has to be added with the capital

profit and to concerned assets. [vice versa for decrease in value ]

Adjustment for Depreciation: When an asset goes up, depreciation during the post-acquisition

period will also go up. Therefore it should be deducted from Revenue Profit.

[Intercompany Owings | Revaluation of Assets]


Question: The following are the summarized Balance Sheet of H Ltd. and S. Ltd. as at 31 December,

2001:

Particulars Note

No.

H Ltd S Ltd



(a) Equity Shares 2,00,000 50,000

(b) Reserves and surplus 1 1,30,000 50,000

(2) Current liabilities [Creditors] 1,00,000 30,000

Total 4,30,000 1,30,000

II ASSETS


Fixed Assets 1,80,000 1,20,000

Investments in S Ltd 2,30,000 -

(2) Current assets 20,000 10,000

Total 4,30,000 1,30,000

1 Reserves and Surplus H Ltd S Ltd

Reserves 30,000 10,000


Profit and Loss A/c as on 01.01.01 60,000 30,000

Profit and Loss for the year 2001 40,000 10,000

1,30,000 50,000

H Ltd. acquired 80% of the shares in S Ltd. on 1st July, 2001 included in the assets of H Ltd., there is

30,000 Loan to S Ltd. shown as creditors in S Ltd. Sundry Assets of S Ltd. include furniture & fittings

of 40,000 to be revalued at 50,000 being over depreciated as at 31st July 2001. Prepare Consolidated

Balance Sheet of H Ltd. as at 31st December, 2001.

Answer:



% 80%

Minority Interest

% 20%

(2) Total Capital

Profit

Revenue

Profit

H Co.[80%] S Co.[20%]

CP RP CP RP

1 Reserves 10,000 10,000 8,000 2,000

2 P/L as on 01.01.01 30,000 30,000 24,000 6,000

3 P/L for the year 2001 10,000 5,000 5,000 4,000 4,000 1,000 1,000

4 Revaluation of Assets 10,000 10,000 8,000 2,000

Total 60,000 55,000 5,000 44,000 4,000 11,000 1,000


Cost of Acquisition 2,30,000 Book Value of Shares 10,000

1 Book Value of Shares 40,000 Capital Profit(2) 11,000

2 Capital Profit(2) 44,000 84,000 Revenue Profit(2) 1,000

Goodwill 1,46,000 Minority Interest 22,000

(5) Consolidated Balance Sheet Note H Ltd S Ltd Consol



(a) Equity Shares 2,00,000 - 2,00,000

(b) Reserves and surplus 1 1,30,000 4,000 1,34,000


(2) Current liabilities [Creditors] 2 1,00,000

Total 4,56,000

II ASSETS


Intangible Assets [Goodwill] - - 1,46,000

Tangible Assets 3 2,80,000

(2) Current assets 20,000 10,000 30,000

Total 4,56,000


1 Reserves and Surplus H Ltd S Ltd Consol

Reserves 30,000

Profit and Loss A/c as on 01.01.01 60,000

Profit and Loss for the year 2001 40,000 4,000

1,30,000 4,000 1,34,000

2 Current Liabilities 1,00,000 30,000 1,30,000

Mutual Owings 30,000

1,00,000

3 Non-current Assets [Tangible]

Fixed Assets 1,80,000 1,20,000 3,00,000

Appreciation 10,000 10,000

Mutual Owings (30,000)

2,80,000

Revaluation of Assets

[CMA INTER D05 & D07, 8+4+4=16 Marks]

Question: The Balance Sheet of Small Ltd. as on 31st March, 2005 was as under:

Particulars in lacs



(a) Equity Shares of 100 each 6.00


General Reserve 3.00

Profit and Loss [Brought Forward] 1.20

Profit and Loss [Current Year] 0.60

Preliminary Expenses (0.50) 4.30

(2) Current liabilities [Creditors] 1.20

Total 11.50

II ASSETS


Land and Building 4.00

Machinery 3.50

Less: Depreciation for the year 0.50 3.00

(2) Current assets

Stock at cost 2.00

Debtors 1.50

Cash and Bank Balance 1.00 4.50

Total 11.50

Big Ltd. purchased 4000 equity shares of 100 each on 1st October, 2004 on which date it was found

that Land and Building were undervalued by 1 lakh and machinery was worth only 2.75 lakh. In


preparing the consolidated Balance Sheet of holding company, it was decided to adopt proper values

of Assets, and write off preliminary expenses. On the above information given

Ascertain:

a) Capital Profits

b) Revenue profits and

c) Minority interest

Answer:



%

4,000

6,000% 2

3

Minority Interest

%

2,000

6,000% 1

3

(2) Total Capital

Profit

Revenue

Profit

H Co.[

] S Co.[

]

CP RP CP RP

1 General Reserve 3,00,000 3,00,000 2,00,000 1,00,000

2 Profit or Loss B/F 1,20,000 1,20,000 80,000 40,000

3 Profit or Loss Cur. Year 60,000 30,000 30,000 20,000 20,000 10,000 10,000

4 Preliminary Expenses (50,000) (50,000) - (33,333) (16,667)

5 Revaluation of Assets(3) 50,000 50,000 - 33,333 16,667

6 Change in Depreciation(4) 3,571 - 3,571 2,381 1,190

Total 4,50,000 33,571 3,00,000 22,381 1,50,000 11,190

(3) Revaluation of Assets Date

Land and

Building Machinery

(a) Book Value 01.04.06 4,00,000 3,50,000

(b) Less Depreciation [Balancing Figure] 2006-07 - 50,000

(c) Book Value 31.03.07 4,00,000 3,00,000

(d) Rate of Depreciation ()()

% - 1

7

(e) Depreciation (a)(d) up to 01.10.06 - 25,000

(f) Book Value as on the date of acquisition 01.10.06 - 3,25,000

(4) Revaluation of Assets Date Land and Building Machinery

Book Revised Change Book Revised Change

Value as on(3) 01.10.06 4,00,000 5,00,000 1,00,000 3,25,000 2,75,000 (50,000)

Less Depreciation 3,571

Value as on 31.03.07 1,00,000 (46,429)

(5) Revaluation of Assets(4) Type Land and

Building Machinery Total

Change in value Capital Profit (Loss) 1,00,000 (50,000) 50,000

Change in depreciation Revenue Profit (Loss) - 3,571 3,571


(6) Minority Interest

Book Value 2,00,000

Capital Profit(2) 1,50,000

Revenue Profit(2) 11,190

Minority Interest 3,61,190

[Abnormal Loss | Mutual Owings | Tax Treatment | Different Date of B/S for H Ltd and S Ltd]


Question: The Balance Sheet of H Ltd. and S Ltd. as on the date of last closing of accounts are as

under:

Particulars Note In

I EQUITY AND LIABILITIES H Ltd as at

31.03.2011

S Ltd as at

31.03.2010


(a) Equity Shares of 10 each 11,00,000 5,00,000

(b) Reserves and surplus [Accumulated] 4,50,000 2,05,000

(2) Non-current liabilities

[15% Non convertible Debentures]

- 3,00,000

(3) Current liabilities

(a) Accounts Payable 4,80,000 2,80,000

(b) Other Liabilities 1,00,000 40,000

(c) Tax Provision 1,50,000 2,50,000

Total 22,80,000 15,75,000

II ASSETS


Tangible Assets 8,45,000 5,26,500

Less: Depreciation for the year (1,95,000) (1,21,500)

Investments

(a) 40,000 Shares in S Ltd. 8,00,000

(b) 1,000 Debentures in S Ltd. 1,50,000

(2) Current assets

Inventories 2,00,000 3,50,000

Accounts Receivable 2,50,000 4,65,000

Cash and Bank Balance 2,30,000 3,55,000

Total 22,80,000 15,75,000

The following information is also available:

a) On 8th February, 2011 there was a fire at the factory of S Ltd., resulting in inventory worth

20,000 being destroyed. S Ltd. received 75 per cent of the loss as insurance.

b) The same fire resulted in destruction of a machine having a written down value of 1,00,000. The

Insurance company admitted the Companys claim to the extent of 80 per cent. The machine was

insured at its fair value of 1,50,000.


c) On 13th March, 2011, H Ltd. sold goods costing 1,50,000 to S Ltd. at a mark-up of 20 per cent.

Half of these goods were resold to H Ltd. who in turn was able to liquidate the entire stock of

such goods before closure of accounts on 31st March, 2011. As on 31st March, 2011, S Ltd.s

accounts payable show 60,000 due to H Ltd. on the two transactions.

d) H Ltd. acquired the holdings in S Ltd. on 1st January, 2009 when the reserves and accumulated

profits of S Ltd. stood at 75,000.

e) Both companies have not provided for tax on current year profits. The current year taxable profits

are 33,000 and 66,000 for H Ltd. and S Ltd. respectively. The tax rate is 33%.

f) The incremental profits earned by S Ltd. for the period January, 2011 to March, 2011 over that

earned in the corresponding period in 2010 was 56,000. Except for the profits that resulted from

the transactions with H Ltd. in the aforesaid period, the entire profits have been realised in cash

before 31st March, 2011.

Required: Prepare a Consolidated Balance Sheet of H Ltd. and its Subsidiary as at 31st March, 2011

Answer:

(1) Particulars Note In

I EQUITY AND LIABILITIES S Ltd as at

31.03.2010

Change S Ltd as at

31.03.2011


(a) Equity Shares of 10 each 5,00,000 - 5,00,000

(b) Reserves and surplus [Accumulated] 2,05,000 49,220* 2,54,220



3,00,000 - 3,00,000


(a) Accounts Payable 2,80,000 60,000 3,40,000

(b) Other Liabilities 40,000 - 40,000

(c) Tax Provision 2,50,000 21,780 2,71,780

Total 15,75,000 17,06,000

II ASSETS


Tangible Assets 5,26,500 (1,30,000) 3,96,500

Less: Depreciation for the year (1,21,500) 30,000** (91,500)

(2) Current assets

Inventories 3,50,000 70,000 4,20,000

* Incremental profit

Incremental Profit 56,000

Add Profit on insurance claim [machine] 20,000

Less Loss on insurance claim [stocks] (5,000)

Less Tax Provision (21,780)

Total 49,220

Payables to H Ltd for the purchases 60,000 Tax on current year taxable profit = 60,00033% = 21,780 Insurance claim = 80% of fair value ** Impact on depreciation = Insurance Claim

= 1,30,000

1,21,500

5,26,500 =30,000

Purchase of goods from H Ltd with profit % of Sales Abnormal Loss = (1,50,000 + 20%) 50% 20,000


Accounts Receivable 4,65,000 - 4,65,000

Cash and Bank Balance 3,55,000 41,000* 3,96,000

Insurance Claim Receivable - 1,30,000 1,30,000

Total 15,75,000 17,06,000



%

40,000

50,000% 80%

Minority Interest

%

10,000

50,000% 20%

(3) Total Capital

Profit

Revenue

Profit

H Co.[80%] S Co.[20%]

CP RP CP RP

Profit or Loss(3) 2,54,220 75,000 1,79,220 60,000 1,43,376 15,000 35,844


Cost of Acquisition Book Value 1,00,000

Equity Shares 8,00,000 Capital Profit 15,000

Debenture 1,50,000 Revenue Profit 35,844

1 Book Value Equity 4,00,000 Minority Interest 1,50,844

Book Value Debenture 1,00,000

2 Capital Profit 60,000 5,60,000

Goodwill 3,90,000

Consolidated Balance Sheet Note In

I EQUITY AND LIABILITIES H Ltd as at

31.03.2011

S Ltd as at

31.03.2011

Consol.

31.03.2011


(a) Equity Shares of 10 each 11,00,000 - 11,00,000

(b) Reserves and surplus [Accumulated] 1 5,67,486

(c) Minority Interest 1,50,844



- 2,00,000 2,00,000


(a) Accounts Payable 2 7,60,000

(b) Other Liabilities 1,00,000 40,000 1,40,000

(c) Tax Provision 3 4,32,670

* Incremental Cash

Insurance claim for stocks received 15,000

Total incremental profit 56,000

Profit Earned on transaction with H Ltd [not in cash] 30,000 26,000

Total incremental cash 41,000


Total 33,51,000

II ASSETS


Intangible Assets [Goodwill(4)] 3,90,000 3,90,000

Tangible Assets 4 9,55,000

(2) Current assets

Inventories 5 6,05,000

Accounts Receivable 6 6,55,000

Insurance Claim Receivable - 1,20,000 1,20,000

Cash and Bank Balance 2,30,000 3,96,000 6,26,000

Total 33,51,000

1 Reserves and surplus [Accumulated] 4,50,000 1,43,376 5,93,376

Tax Provision for H Ltd [33,00033

100] (10,890) (10,890)

Unrealised Profit [downstream] (15,000) (15,000)

Total 5,67,486

2 Accounts Payable 4,80,000 3,40,000 8,20,000

Mutual Owings (60,000) (60,000)

Total 7,60,000

3 Tax Provision 1,50,000 2,71,780 3,21,780

Tax Provision for H Ltd [33,00033

100] 10,890 10,890

Total 4,32,670

4 Tangible Assets 8,45,000 3,96,500 12,41,500

Less: Depreciation for the year (1,95,000) (91,500) (2,86,500)

Total 9,55,000

5 Inventories 2,00,000 4,20,000 6,20,000

Unrealised Profit (15,000) (15,000)

Total 6,05,000

6 Accounts Receivable 2,50,000 4,65,000 7,15,000

Mutual Owings (60,000) (60,000)

Total 6,55,000

[Preliminary Expenses | Bonus Shares out of Pre-acquisition Profit | Inter-company Owings

|Unrealsied Profit on Unsold Stock | Revaluation of Assets]

Question:

Balance Sheet as on 31.3.2008 Note H Co. S Co.



(a) Share capital of 100 each 5,00,000 7,00,000


(2) Current liabilities 2 3,00,000 2,00,000


Total 15,00,000 11,80,000

II ASSETS


(a) Intangible Assets [Goodwill] 1,00,000 1,00,000

(b) Tangible Assets 3 5,00,000 4,20,000

(c) Investments 4,00,000 2,00,000

(2) Current assets 4 5,00,000 4,60,000

Total 15,00,000 11,80,000

1 Reserves and Surplus H Co. S Co.

General Reserve 3,00,000 1,00,000


Preliminary Expenses - (20,000)

7,00,000 2,80,000


Creditors 2,00,000 1,00,000


Other Liabilities 50,000 60,000

3,00,000 2,00,000



Land and Building 3,00,000 1,80,000

5,00,000 4,20,000


Stock 1,00,000 3,00,000

Debtors 80,000 90,000

Bills receivable 20,000 30,000

Sundry Assets 3,00,000 40,000

5,00,000 4,60,000

Adjustment:

1 H Ltd acquired 3,000 shares in S Ltd for 350,000 on 1.10.2007.

2 The profit and loss a/c and general reserve stood at 1,00,000 and 3,00,000 respectively on 1.4.2007

3 A bonus issue of 2 shares for every 5 shares held was made on 1.11.2007 out of pre acquisition

reserve.

4 Debtors of S Ltd includes 40,000 due from H Ltd for goods supplied at a profit 25% on cost (half of

the goods remained unsold on 31.3.2008)

5 All receivables of H Ltd are from S Ltd

6 Land and Building and Plant and Machinery which stood at 200,000 and 300,000 on 1.4.2007,

where revalued at 400,000 & 200,000 respectively on the date of purchase of shares.

Answer:




%

4,200

7,000% 60%

Minority Interest

%

2,800

7,000% 40%

(2) Total Capital

Profit

Revenue

Profit

H Co.[60%] S Co.[40%]

CP RP CP RP

1 Profit or Loss(3) 2,00,000 1,50,000 50,000 90,000 30,000 60,000 20,000

2 General Reserve(4) 1,00,000 1,00,000 - 60,000 40,000

3 Preliminary Expenses (20,000) (20,000) - (12,000) (8,000)

4 Revaluation of Assets(8) 1,40,000 1,40,000 - 84,000 56,000

5 Change in Depreciation(8) (3,500) - (3,500) (2,100) (1,400)

Total 4,16,500 3,70,000 46,500 2,22,000 27,900 1,48,000 18,600

(3) H Co.[60%] S Co.[40%]

General Reserve (Opening Balance) 3,00,000

Less Bonus Shares 2,00,000 1,20,000 80,000

General Reserve (Closing Balance) 1,00,000

(4) Duration Upto 01.10.07 After 01.10.07

Profit and Loss A/c As on 31.03.08 2,00,000

Less Profit Up to 01.04.07 1,00,000 1,00,000 -

Current Year 2007-08 1,00,000 50,000 50,000

Total 1,50,000 50,000


Proportion of unsold stock Profit % 40,0001

2

25



(6) Revaluation of Assets Date

Land and

Building

Plant and

Machinery

(a) Book Value 01.04.07 2,00,000 3,00,000

(b) Less Depreciation [Balancing Figure] 2007-08 20,000 60,000

(c) Book Value 31.03.08 1,80,000 2,40,000

(d) Rate of Depreciation ()()

% 10% 20%

(e) Depreciation (a)(d) up to 01.10.07 10,000 30,000

(f) Book Value as on the date of acquisition 01.10.07 1,90,000 2,70,000

(7) Revaluation of Assets Date Land and Building Plant and Machinery

Book Revised Change Book Revised Change

Value as on(6) 01.10.07 1,90,000 4,00,000 2,10,000 2,70,000 2,00,000 (70,000)

Less Depreciation 10,500 (7,000)


Value as on 31.10.07 1,99,500 (63,000)


Building

Plant and

Machinery Total

Change in value Capital Profit (Loss) 2,10,000 (70,000) 1,40,000

Change in depreciation Revenue Profit (Loss) (10,500) 7,000 (3,500)


Cost of Acquisition 3,50,000 Book Value Including

Bonus

2,80,000

1 Book Value Including

Bonus

4,20,000 Capital Profit(2)

1,48,000

2 Capital Profit(2) 2,22,000 6,42,000 Revenue Profit(2) 18,600

Goodwill 2,92,000 Minority Interest 4,46,600

(11) Consolidated Balance Sheet of H Co. Ltd Note H Co. S Co. Consol.



(a) Share capital of 100 each 5,00,000 - 5,00,000

(b) Reserves and surplus 1 7,00,000 1,15,900 8,15,900


(2) Current liabilities 2 4,40,000

Total 22,02,500

II ASSETS


(a) Tangible Assets 3 5,00,000 5,56,500 10,56,500

(b) Investments [for H: 4,00,000-3,50,000] 50,000 2,00,000 2,50,000


Total 22,02,500

1 Reserves and Surplus H Co. S Co. Consol.

Capital Reserve(9) - 2,92,000

Goodwill - (2,00,000)

General Reserve 3,00,000

Profit and Loss A/c(2) 4,00,000 30,000

Change in Depreciation(2) - (2,100)

Unrealised Profit on Unsold Stock - (4,000)

7,00,000 1,15,900 8,15,900


Creditors 2,00,000 1,00,000 3,00,000


Bills Payable 50,000 40,000 90,000



Other Liabilities 50,000 60,000

3,00,000 2,00,000 4,40,000



Change in value (63,000)


Change in value 1,99,500

5,00,000 5,56,500 10,56,500

5 Current Assets

Stock 1,00,000 3,00,000 4,00,000

Unrealised Profit on Unsold Stock (4,000)

Debtors 80,000 90,000 1,70,000


Bills receivable 20,000 30,000 50,000


Sundry Assets 3,00,000 40,000 3,40,000

5,00,000 4,60,000 8,96,000

Adjustments for Dividends:

I Dividend declared and paid by subsidiary company:

1 Out of revenue profit No adjustment is required

2 Out of Capital Profit Holding company share of dividend

(a) If the dividend credited to profit and loss a/c Credit Cost of Acquisition

Debit Profit and Loss A/c of H Co.

(b) If the dividend credited to cost of acquisition No adjustments

II Proposed Dividend Minoritys share can be shown in B/S

[CMA FINAL J10, 7 Marks]

Question: On 31.12.09 the balance sheets of H Ltd. and S Ltd. disclose the following figures:

H. Ltd. S. Ltd.

Share premium 10,000 6,000

General reserve 20,000 12,000

Capital reserve -- 8,000

Profit And Loss Account 30,000 20,000

On the date when H. Ltd. acquired control of S Ltd., S Ltd. had 10,000 in Profit and Loss A/c and

10,000 in General Reserve, apart from Share Premium and Capital Reserve Account which were


same as on 31.12.09. H Ltd. holds th of the shares. H. Ltd. received 6,000 dividend out of pre-

acquisition profit. Show how the above figures will appear in Consolidated Balance Sheet.

Answer:



% 75%

Minority Interest

% 25%

(2) Total Capital

Profit

Revenue

Profit

H Co.[75%] S Co.[25%]

CP RP CP RP

1 Profit or Loss(3) 20,000 2,000 18,000 1,500 13,500 500 4,500

2 General Reserve 12,000 10,000 2,000 7,500 1,500 2,500 500

3 Share Premium 6,000 6,000 4,500 1,500

4 Capital Reserve 8,000 8,000 6,000 2,000

Total 46,000 26,000 20,000 19,500 15,000 6,500 5,000

(3) Pre-acquisition P/L H Co.[75%] S Co.[25%]

Profit or Loss (Opening Balance) 10,000

Less Dividend Declared 8,000 6,000 2,000

Profit or Loss (Closing Balance) 2,000


Cost of Acquisition Book Value

1 Book Value Capital Profit(2) 6,500

2 Capital Profit(2) 26,000 Revenue Profit(2) 5,000

Capital Reserve Minority Interest


Profit or Loss 30,000 13,500 43,500

General Reserve 20,000 1,500 21,500

Share Premium 10,000 10,000

[Mutual Owings | Pre-acquisition Dividend correctly credited in investment]


H Ltd. acquired 80% shares of S Ltd. on April 1, 2008. The Balance Sheet of H Ltd. and S Ltd. as on

March 31. 2009 are as follows:

Particulars Note H Co. S Co.






Total 16,40,000 6,90,000


II ASSETS


(a) Tangible Assets 3 10,00,000 4,60,000

(b) Investments 3,20,000 20,000

(2) Current assets 4 3,20,000 2,10,000

Total 16,40,000 6,90,000

1 Reserves and Surplus H Co. S Co.



5,80,000 2,80,000


Sundry Creditors 1,00,000 60,000


1,60,000 1,10,000




Furniture and Fixtures 1,90,000 90,000

10,00,000 4,60,000


Stock 90,000 50,000

Debtors 1,20,000 1,00,000

Bills receivable 70,000 40,000

Cash and Bank 40,000 20,000

3,20,000 2,10,000

Other Information:

(i) As on the date of acquisition, the following balances were revealed in the books of S. Ltd.

a. General Reserve: 1, 00,000

b. Profit & Loss Account: 60,000 (Cr.)

(ii) H. Ltd. received a dividend of 24,000 from S. Ltd. on the date of acquisition and credited the

amount.

(iii) Sundry debtors of H. Ltd. include 10,000 due from S. Ltd.

(iv) Total bills payable of S. Ltd. consisted of bills drawn by H. Ltd. and the same were discounted

with the bank by H. Ltd.

You are required to prepare the consolidated Balance Sheet of H. Ltd. and S. Ltd. as on March

31.2009.

Answer:



% 80%

Minority Interest

% 20%


(2) Total Capital

Profit

Revenue

Profit

H Co.[80%] S Co.[20%]

CP RP CP RP

1 Profit or Loss(3) 1,30,000 30,000 1,00,000 24,000 80,000 6,000 20,000

2 General Reserve 1,50,000 1,00,000 50,000 80,000 40,000 20,000 10,000

Total 2,80,000 1,30,000 1,50,000 1,04,000 1,20,000 26,000 30,000


Profit or Loss (Opening Balance) 60,000

Less Dividend Declared 30,000 24,000* 6,000

Profit or Loss (Closing Balance) 30,000



1 Book Value 2,40,000 Capital Profit(2) 26,000


Capital Reserve 24,000 Minority Interest 1,16,000

Consolidated Balance Sheet of H Ltd Note H Co. S Co. Consol.




(b) Reserves and surplus 1 7,24,000



Total 20,00,000

II ASSETS


(a) Tangible Assets 3 10,00,000 4,60,000 14,60,000

(b) Investments - 20,000 20,000


Total 20,00,000


Capital Reserve 24,000 24,000

General Reserve 3,90,000 40,000 4,30,000


7,24,000


Sundry Creditors 1,00,000 60,000 1,60,000


* Requires no adjustments as pre-acquisition dividend correctly credited in investment a/c


Bills Payable 60,000 50,000 1,10,000

2,60,000


Land and Building 4,20,000 2,40,000 6,60,000

Plant and Machinery 3,90,000 1,30,000 5,20,000

Furniture and Fixtures 1,90,000 90,000 2,80,000

10,00,000 4,60,000 14,60,000

5 Current Assets

Stock 90,000 50,000 1,40,000

Debtors 1,20,000 1,00,000 2,20,000


Bills receivable 70,000 40,000 1,10,000

Cash and Bank 40,000 20,000 60,000

5,20,000

[Bonus shares | Dividend out of pre-acquisition profit |Mutual Owings | Unrealised profit on

unsold stock and assets transferred]

Question: Following are the Balance Sheet of H Ltd and S Ltd., as at 31.03.2001

Note H Co. S Co.







(2) Current liabilities 5,00,000 9,00,000

Total 20,00,000 22,00,000

II ASSETS


(a) Tangible Assets 8,00,000 9,00,000

(b) Investments in S Ltd 5,00,000 -

(2) Current assets 7,00,000 13,00,000

Total 20,00,000 22,00,000

The following further information is furnished:

1 H Ltd acquired 30,000 shares in S Ltd as on 01.04.2000, when reserves and profit and loss a/c

position was as follows:

General reserve 5,00,000

Profit and Loss a/c 2,00,000

2 On 01.10.2000, S Ltd issued 2 shares for every 5 shares held, as bonus shares at a face value of 10

per share. [No entry is made in the books of H Ltd for receipt of these bonus shares.]

3 On 30.06.2000, S Ltd declares dividend out of pre-acquisition profit at 20% and H Ltd credited the


receipt of dividend on its profit and loss account.

4 S Ltd., owed H Ltd 1,20,000 for purchase of stock from H Ltd., the entire stock held by S Ltd on

31.3.2001. H Ltd made a profit of 20% on cost.

5 H Ltd transferred machinery to S Ltd., for 1,00,000. The book value of the machine of H Ltd was

75,000.

Prepare a consolidated balance sheet as at 01.03,2001.

Answer: Shares held by H Ltd. [including bonus shares of 2 for 5 shares held] = 4,200



%

4,200

7,000% 60%

Minority Interest

%

2,800

7,000% 40%

(2) Total Capital

Profit

Revenue

Profit

H Co.[60%] S Co.[40%]

CP RP CP RP

1 Profit or Loss(3) 3,00,000 1,00,000 2,00,000 60,000 1,20,000 40,000 80,000

2 General Reserve(4) 3,00,000 3,00,000 - 1,80,000 - 1,20,000

Total 6,00,000 4,00,000 2,00,000 2,40,000 1,20,000 1,60,000 80,000



Less Dividend Declared 1,00,000 60,000 40,000


(4) Pre-acquisition GR H Co.[60%] S Co.[40%]




(5) (a) Unrealised Profit on Unsold Stocks [Downstream] H Co.

Proportion of unsold stock Profit % 1,20,00020

120 20,000 Debit Profit and Loss A/c


(b) Profit on assets transferred [Downstream]

Transfer Price Cost Price 1,00,000 75,000 25,000 Debit Profit and Loss A/c

Credit Machinery A/c


Cost of Acquisition 5,00,000 Book Value Including Bonus 2,80,000

1 Book Value Including Bonus 4,20,000 Capital Profit(2) 1,60,000

2 Capital Profit(2) 2,40,000 Revenue Profit(2) 80,000

3 Dividend from Pre-acq Profit 60,000 7,20,000


Capital Reserve 2,20,000 Minority Interest 5,20,000

(8) Consolidated Balance Sheet of H Co. Ltd Note H Co. S Co. Consol.







Total 35,35,000

II ASSETS

(1) Non-current assets 3 16,75,000


Total 35,35,000


Capital Reserve(6) - 2,20,000 2,20,000

General Reserve 2,00,000 - 2,00,000

Profit and Loss A/c(2) 3,00,000 1,20,000 4,20,000

Profit on Assets Transferred (25,000)


Pre-acquisition Dividend (60,000)

7,35,000

2 Current Liabilities 5,00,000 9,00,000 14,00,000

Mutual Owings (1,20,000)

12,80,000

3 Non-current Assets 8,00,000 9,00,000 17,00,000

Profit on Assets Transferred (25,000)

16,75,000

4 Current Assets 7,00,000 13,00,000 20,00,000



18,60,000

[Proposed Dividend | Unrealised Profit | Mutual Owings]

Question: The Balance Sheets of H Ltd, and its subsidiary S Ltd, as on 31st March, 1999 are as

follows:

Note H Co. S Co.






(2) Non-current Liabilities [15% Debentures] 10,00,000 -


Total 60,60,000 27,50,000

II ASSETS

(1) Non-current assets 43,00,000 16,00,000

(2) Current assets 17,60,000 11,50,000

Total 60,60,000 27,50,000

1 Reserves and surplus H Ltd S Ltd

General Reserve as on 01.04.98 8,00,000 4,00,000

Profit and Loss A/c as on 01.04.98 2,00,000 2,50,000

Net Profit for 1998-99 6,00,000 4,00,000

Miscellaneous Expenses - (1,00,000)

16,00,000 9,50,000

2 Current liabilities

Creditors 4,00,000 2,70,000


4,60,000 3,00,000


Premises 14,00,000 9,00,000

Machinery 12,00,000 7,00,000

Investment in Shares of S Ltd 17,00,000 -

43,00,000 16,00,000

4 Current Assets

Inventories 7,00,000 4,50,000

Debtors 5,00,000 4,20,000

Cash and Bank 3,80,000 2,00,000

Bills Receivable 1,80,000 80,000

17,60,000 11,50,000

The following is the additional information:

1 H Ltd acquired 12,000 equity shares in S Ltd on 1st April 1998.

2 Bills receivable of H Ltd includes 30,000 accepted by S Ltd

3 Accounts receivable of H Ltd include 1,00,000 due from S Ltd

4 S Ltd purchased goods from H Ltd for 2,50,000 which invoiced by H Ltd at a profit of 20% on

Sales. Half of the goods remains unsold

5 Both H Ltd and S Ltd have proposed 10% dividend for the year 1998-99, but no effect has been

given in the balance sheets.

Prepare a consolidated balance sheet of H Ltd and its subsidiary S Ltd as on 31stMarch, 1999 giving

proper working notes. Ignore corporate dividend tax.

Answer:




%

12,000

15,000% 80%

Minority Interest

%

3,000

15,000% 20%

(2) Total Capital

Profit

Revenue

Profit

H Co.[80%] S Co.[20%]

CP RP CP RP

1 P/L as on 01.04.98 2,50,000 2,50,000 - 2,00,000 - 50,000 -

2 GR as on 01.04.98 4,00,000 4,00,000 - 3,20,000 - 80,000 -

3 P/L for 1998-99 4,00,000 - 4,00,000 - 3,20,000 - 80,000

4 Miscel. Expenses (1,00,000) (1,00,000) - (80,000) - (20,000) -

Total 9,50,000 5,50,000 4,00,000 4,40,000 3,20,000 1,10,000 80,000



2

20




Cost of Acquisition 17,00,000 Book Value of Shares 3,00,000

1 Book Value of Shares 12,00,000 Capital Profit(2) 1,10,000


Goodwill 60,000 Minority Interest 4,90,000

(6) Consolidated Financial Statement of H Co. Note H Co. S Co. Consol.






(2) Non-current Liabilities [15% Debentures] 10,00,000


Total 70,20,000

II ASSETS


(a) Intangible Assets [Goodwill] 60,000

(b) Tangible Assets 3 26,00,000 16,00,000 42,00,000


Total 70,20,000

1 Reserves and surplus H Ltd S Ltd Consol

General Reserve as on 01.04.98 8,00,000 -

Profit and Loss A/c as on 01.04.98 2,00,000 -


Net Profit for 1998-99 6,00,000 3,20,000

16,00,000 3,20,000 19,20,000

Proposed Dividend of H Ltd., (3,00,000) - (3,00,000)

Unrealised Profit (20,000)

16,00,000


Creditors 4,00,000 2,70,000 6,70,000

Mutual Owings - - (1,00,000)

Bills Payable 60,000 30,000 90,000

Mutual Owings - - (30,000)

Proposed Dividend of H Ltd., 3,00,000 - 3,00,000

9,30,000

3 Non-current Assets [Tangible Assets]

Premises 14,00,000 9,00,000 23,00,000

Machinery 12,00,000 7,00,000 19,00,000

26,00,000 16,00,000 42,00,000

4 Current Assets

Inventories 7,00,000 4,50,000 11,50,000

Unrealised Profit (20,000)

Debtors 5,00,000 4,20,000 9,20,000


Cash and Bank 3,80,000 2,00,000 5,80,000

Bills Receivable 1,80,000 80,000 2,60,000


27,60,000

[Preference Shares | Dividend | Bonus Shares]


Question: The following are the summarized balance sheets of P Ltd. and S Ltd. as at 31st March,

2003:

Note P Co. S Co.



(a) Share capital 1 80,00,000 60,00,000


(2) Non-current Liabilities [10% Debentures] 20,00,000 5,00,000


Total 2,00,00,000 1,23,00,000

II ASSETS


(a) Tangible Assets 4 90,00,000 70,00,000

(b) Investments 5 70,00,000 20,00,000


(2) Current assets 6 40,00,000 33,00,000

Total 2,00,00,000 1,23,00,000

1 Share Capital P Ltd S Ltd

12% Preference Shares of 10 each - 20,00,000

Equity Shares of 10 each 80,00,000 40,00,000

80,00,000 60,00,000

2 Reserves and surplus

Securities Premium 10,00,000 -



70,00,000 34,00,000


Proposed Dividend

(1) Equity 12,00,000 6,00,000

(2) Preference - 2,40,000

Accrued Debenture Interest - 50,000

Creditors 18,00,000 15,10,000

30,00,000 24,00,000

Non-current Assets

4 Tangible Assets


Other Fixed Assets 40,00,000 30,00,000

90,00,000 70,00,000

5 Investment at cost in S Ltd

(1) 3,00,000 Equity Shares 45,00,000 -

(2) 1,00,000 Preference Shares 12,00,000 -

(3) 10% Debentures at face vale 2,50,000 -

Investments in Govt. Securities 10,50,000 20,00,000

70,00,000 20,00,000

6 Current Assets

Stocks 15,00,000 12,00,000

Debtors and Bank 25,00,000 21,00,000

40,00,000 33,00,000

Additional information:

a) P Ltd. acquired its interest in S Ltd. on 1st April, 2002, when the latter company had 18,00,000 in

its general reserve account.

b) S Ltd. arrives at its profit and Loss account balance as follows:

Balance 1st April, 2002 4,00,000


Profit in the current year 20,40,000

24,40,000

Transfer to Reserves 2,00,000

Proposed Dividend 8,40,000

10,40,000

Balance on 31st March, 2003 14,00,000

c) The profit and loss account balance of S Ltd. as on 1st April, 2002 was arrived at after providing

for preference and 10% equity dividends for the year ended 31st March, 2002. These dividends

were paid in August, 2002. P Ltd. credited dividends received from S Ltd. to its profit and loss

account.

d) P Ltd. has made no provisions in respect of debenture interest and dividends receivable from S

Ltd. for the year ended 31st March, 2003.

e) In January, 2003 S. Ltd. issued fully paid bonus shares in the ratio of one share for every four held

by utilizing general reserve. The transaction is yet to be recorded in the books of both P Ltd. and S

Ltd.

Draft a consolidated balance sheet as at 31st March, 2003. Show details of computation of cost of

control, minority interest and consolidated profit.

Answer:



%

3,00,000

4,00,000% 75%

Minority Interest

%

1,00,000

4,00,000% 25%

(2) Total Capital

Profit

Revenue

Profit

P Co.[75%] S Co.[25%]

CP RP CP RP

1 Profit or Loss 14,00,000 4,00,000 10,00,000 3,00,000 7,50,000 1,00,000 2,50,000

2 Gen. Reserve(4) 10,00,000* 8,00,000 2,00,000 6,00,000 1,50,000 2,00,000 50,000

3 Proposed Divid.

(a) Equity 6,00,000 6,00,000 4,50,000 1,50,000

(b) Preference [1:1] 2,40,000 2,40,000 1,20,000 1,20,000

Total 32,40,000 12,00,000 20,40,000 9,00,000 14,70,000 3,00,000 5,70,000

(3) Pre-acquisition Dividend P Co.[75%] S Co.[25%]

Equity Shares 4,00,000 3,00,000 2,00,000

Preference Shares [1:1 Ratio] 2,40,000 1,20,000 1,20,000

Total 4,20,000

(4) Pre-acquisition GR P Co.[75%] S Co.[25%]


Less Bonus Shares 10,00,000 7,50,000 2,50,000


* General Reserve after Bonus Issue = (20,00,000 10,00,000)



Cost of Acquisition Book Value

Equity Shares 45,00,000 Equity Shares 10,00,000

Preference Shares 12,00,000 Preference Shares 10,00,000

Debentures 2,50,000 Capital Profit(2) 3,00,000

59,50,000 Revenue Profit(2) 3,00,000

1 Book Value Bonus Shares 2,50,000

Equity Shares 30,00,000 Minority Interest 28,50,000

Preference Shares 10,00,000 (7) Proposed Dividend

Debentures 2,50,000 Equity 1,50,000

2 Capital Profit(2) 9,00,000 Preference 1,20,000

3 Bonus Shares 7,50,000

4 Dividend from Pre-acq Profit 4,20,000 63,20,000

Capital Reserve 3,70,000

(8) Consolidated Balance Sheet of P Ltd Note P Co. S Co. Consol.



(a) Share capital 80,00,000 - 80,00,000



(2) Non-current Liabilities [10% Debentures] 20,00,000 2,50,000 22,50,000


Total 2,63,50,000

II ASSETS


(a) Tangible Assets 3 90,00,000 70,00,000 1,60,00,000

(b) Investments in Govt. Securities 10,50,000 20,00,000 30,50,000

(2) Current assets 4 40,00,000 33,00,000 73,00,000

Total 2,63,50,000

1 Reserves and surplus P Ltd S Ltd Consol.

Securities Premium 10,00,000 10,00,000

Capital Reserve 3,70,000 3,70,000


Profit and Loss A/c 24,00,000 14,70,000(2) 38,70,000

Pre-acquisition Dividend(3) (4,20,000) (4,20,000)

Accrued Debenture Interest* 25,000 25,000

84,45,000

* Cancellation of Mutual Owings



Proposed Dividend(7)

(3) Equity 12,00,000 1,50,000 13,50,000

(4) Preference - 1,20,000 1,20,000

Accrued Debenture Interest - 25,000 25,000

Creditors 18,00,000 15,10,000 33,10,000

48,05,000

Non-current Assets

3 Tangible Assets

Land and Building 50,00,000 40,00,000 90,00,000

Other Fixed Assets 40,00,000 30,00,000 70,00,000

90,00,000 70,00,000 1,60,00,000

4 Current Assets

Stocks 15,00,000 12,00,000 27,00,000

Debtors and Bank 25,00,000 21,00,000 46,00,000

40,00,000 33,00,000 73,00,000

[CMA FINAL, SY08, J12, 15 Marks]

Question: the following are the Balance Sheets of H Ltd and S Ltd., as at 31.03.2012

Note H Co. S Co.




(b) 12% Preference Shares of 10 each 1,00,000 50,000

(c) Reserves and surplus



(2) Non-current liabilities [12% Debentures] 2,00,000 2,00,000


Sundry Creditors 3,00,000 5,35,000

Bills Payable 1,40,000 1,40,000

Total 23,00,000 22,50,000

II ASSETS


(a) Tangible Assets



(b) Investments in S Ltd

Shares in S Ltd 7,10,000

900, 12% Debentures in S Ltd 80,000

(2) Current assets

Stock 1,00,000 3,00,000


Debtors 4,00,000 10,10,000

Cash at Bank 60,000 2,75,000

Bills Receivable 1,00,000 1,00,000

Preliminary Expenses 50,000 25,000

Total

Note: Contingent liability in respect of Bills discounted by H Ltd. 50,000.

Contingent liability in respect of Bills discounted by S Ltd. 25,000 of which Bills of 5,000 were

accepted by H Ltd.

Additional Information:

a) H Ltd. acquired 40,000 Equity Shares of S Ltd. and 2,000. 12% Pref. Shares in S Ltd. on 1.7.2011 at

a cost of 6,80,000 and 30,000 respectively. The credit balance of Profit and Loss Account of S

Ltd. as on 1.4.2011 was 2,25,000 and that of General Reserve on that date was 6,00,000.

b) On 30.9.2011, S Ltd. declared dividend @ 20% on equity shares for the year 2010-2011. H Ltd.

credited the receipt of dividend to its Profit and Loss Account.

c) On 1.1.2012, S Ltd. issued 2 shares for every 5 shares held, as bonus shares. No entry has been

made in the books of H Ltd. for the receipt of these bonus shares.

d) H Ltd. purchased goods for 3 lakhs from S Ltd. which made at a profit of 20% on cost. 80% of

these goods were sold by H Ltd. at a profit of 20% on cost till 31.03.2012.

e) On 1.1.2012, H Ltd. sold to S Ltd. a Machine costing 2,40,000 at a profit of 25% on selling price.

f) Depreciation at 10% p.a. was provided by S Ltd. on this Machine.

g) H Ltd. owed S Ltd. 2,90,000 but S Ltd. is owed 3,00,000 by H Ltd.

h) The Land and Building of S Ltd. which stood at 3,00,000 on 1.4.2011, was considered as worth of

6,92,500 on 1.7.2011, for which necessary adjustments are yet to be made.

i) All the Bills Payables of S Ltd. were drawn upon by H Ltd.

j) The management of H Ltd. and S Ltd. wish to recommend a dividend of 15% p.a. and 10% p.a.

respectively on equity shares for the year 2011-2012.

Required: Calculate Minority Interest, Cost of Control and the Balance of Consolidated Profit and

Loss Account to be shown in the Consolidated Balance Sheet of H Ltd. and its subsidiary, as at 31 st

March, 2012.

Answer: Shares held by H Ltd. [including bonus shares of 2 for 5 shares held] = 56,000



%

56,000

70,000% 80%

Minority Interest

%

14,000

70,000% 20%

(2) Total Capital

Profit

Revenue

Profit

H Co. [80%] S Co. [20%]

CP RP CP RP

1 Profit or Loss(3) 1,71,000 1,34,200 36,800 1,07,360 29,440 26,840 7,360

2 General Reserve(4) 4,48,000 4,12,000 36,000 3,29,600 28,800 82,400 7,200

3 Miscel. Expenses (25,000) (25,000) - (20,000) - (5,000) -

H Co. [40%] S Co. [60%]

4 Prop. Pref. Divid. 6,000 1,500 4,500 600 1,800 900 2,700

Total 6,00,000 5,22,700 77,300 4,17,560 60,040 1,05,140 17,260


(3) Pre-acquisition P/L Date H Co. [80%] S Co. [20%]

Profit and Loss 01.04.2011 2,25,000

Less Dividend Declared [5,00,000 20%] 1,00,000 80,000 20,000

Capital Revenue

Profit and Loss after Dividend 01.04.2011 1,25,000 1,25,000 -

Profit and Loss after Pref Dividend 31.03.2012 1,71,000

Profit for the year after dividend 2011-12 46,000 9,200 36,800

Total 1,71,000 1,34,200 36,800

(4) Pre-acquisition GR Date H Co. [80%] S Co. [20%]

General Reserve 01.04.2011 6,00,000


Capital Revenue

General Reserve after Bonus 4,00,000 4,00,000

General Reserve 31.03.2012 4,48,000

Transfer from P/L 2011-12 48,000 12,000 36,000

Total 4,48,000 4,12,000 36,000

(5) (a) Unrealised Profit on Unsold Stocks [Uptream] H Co.


100

20



(b) Profit on assets transferred [Downstream]

Transfer Price Cost Price

Depreciation

2,40,00025

75

10% for 3 months

78,000 Debit Profit and Loss A/c

Credit Machinery A/c

(6) Revaluation of Assets Date Land and Building

Book Revised Change

Value as on 01.04.2011 3,00,000

Value as on 01.07.2011 2,92,500 6,92,500 4,00,000

Less Depreciation 22,500 52,500 30,000

Value as on 31.03.2012 2,70,000 6,40,000 3,70,000


Building

H Co. [80%] S Co. [20%]

Change in value Capital Profit (Loss) 4,00,000 3,20,000 80,000

Change in depreciation Revenue Profit (Loss) (30,000) (24,000) (6,000)


Cost of Acquisition Book Value Plus Bonus

Equity & Preference Shares 7,10,000 1. Equity Shares 1,40,000

Debentures 80,000 2. Preference Shares 30,000


1 Book Value Plus Bonus Capital Profit(2) 1,05,140

Equity Shares 5,60,000 Revenue Profit(2) 17,260

Preference Shares 20,000 Revaluation of Assets 80,000

Debentures 90,000 Revaluation of Depreciation (6,000)

2 Capital Profit(2) 4,17,560 Minority Interest 3,66,400

3 Divid. from Pre-acq Profit 80,000

4 Revaluation of Assets 3,20,000

5 Revaluation of Depreciation (24,000) 14,63,560

Capital Reserve 6,73,560

[Dividend | Bonus Shares | Intercompany Owings | Unrealized Profit on unsold stock]

[CMA FINAL D08, 5+3+2+1+2+2=15 Marks]

The Balance sheet of Paragon Ltd. and its subsidiary, Axis Ltd., as at March 31, 2008 are as under:

Note P Co. A Co.



(a) Share capital of 10 each 6,000 2,400

(b) Reserves and surplus 1 2,749 1,500

(2) Current liabilities 2 1,944 704

Total 10,693 4,604

II ASSETS


(a) Tangible Assets 3 4,733 2,743

(b) Investments in shares in Axis Ltd 1,500

(2) Current assets 4 4,460 1,861

Total 10,693 4,604

1 Reserves and surplus P Ltd A Ltd

General Reserve 1,392 690

Profit and Loss A/c 1,357 810

2,749 1,500


Bills Payable 186 80

Sundry Creditors 730 427

Provision for Taxation 428 197

Proposed Dividend 600 -

1,944 704

Non-current Assets

3 Tangible Assets

Land and Building 1,359 -

Plant and Machinery 2,452 2,450

Furniture and Fittings 922 293


4,733 2,743

4 Current Assets

Stocks 1,975 978

Sundry Debtors 1,300 681

Bills Receivable 180 100

Sundry Advances 260 -

Cash and Bank Balances 745 102

4,460 1,861

Following additional information is available:

a) Paragon Ltd. purchased 90 lacs shares in Axis Ltd. on April 1, 2007 when the balances in General

Reserve and Profit and Loss Account of Axis Ltd. stood at 1,500 lacs and 600 lacs respectively.

b) On July 4, 2007 Axis Ltd. declared a dividend @ 20% for the year ended March, 31.2007. Paragon

Ltd. credited the dividend so received to its Profit and Loss Account.

c) Out of the balance in its General Reserve Accounts on January 1, 2008 Axis Ltd. issued 3 fully

paid- up bonus shares for every 5 movement in its General Reserve Account in 2007-08.

d) On March 31, 2008 Axis Ltds stock included goods which it had purchased for 50 lacs form

Paragon Ltd. on which the latter made a profit of 25% on cost.

e) On March 31, 2008 all the bills payable in Axis Ltds Balance Sheet were acceptances in favour of

Paragon Ltd. But on that date, Paragon Ltd. held only 23 lacs of these acceptances in hand, the

rest having been endorsed in favour of its creditors.

Required:

(i) Prepare Consolidated Balance sheet of Paragon Ltd. and its Subsidiary Axis Ltd. as at March 31,

2008.

(ii) Analysis of pre-acquisition and Post- acquisition profits.

(iii) Goodwill/Capital Reserve arising out of consolidation.

(iv) Consolidated General Reserve.

(v) Consolidated Profit and Loss Account.

(vi) Minority Interest.

Answer: Shares held by H Ltd. [including bonus shares

37. Holding Company [D98-J14] [27.02.2014]

Documents

Transcript of 37. Holding Company [D98-J14] [27.02.2014]