H Ltd. is a holding company of S Ltd. During the year 2018-19, Bills Receivable amounted to ₹4,00,000, out of total bills receivable of ₹5,00,000 received from S Ltd., were discounted by H Ltd. and S Ltd. had endorsed to

CS Executive · Corporate and Management Accounting · PYQS · December 2019
H Ltd. is a holding company of S Ltd. During the year 2018-19, Bills Receivable amounted to ₹4,00,000, out of total bills receivable of ₹5,00,000 received from S Ltd., were discounted by H Ltd. and S Ltd. had endorsed to its creditors all the bills received from H Ltd. amounting to ₹3,00,000. At the end of the year the amount of mutual debtors will be :
(A) ₹8,00,000
(B) ₹3,00,000
(C) ₹2,00,000
(D) ₹1,00,000

Answer & Explanation:

Correct Answer: Option (D)

Official answer key: (D).

Topics: Consolidated Financial Statements

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