From the balance sheets given below, prepare a consolidated balance sheet: Particulars M Ltd. (₹) D Ltd. (₹) I. EQUITY AND LIABILITIES : 1. Shareholders' fund (a) Share Capital 1 each share 1,50,000 30,000 (b) Reserves a

Particulars Total (100%) Holding (75%) Minority Interest (25%) Share Capital 30,000 General Reserve 9,000 Revaluation Profit on Fixed Assets 3,000 Intrinsic Value of Shares 42,000 31,500 10,500 Less: Cost of Shares 22,500 Capital Reserve 9,000 Post Acquisition Profit 18,000 13,500 4,500 Consolidated Profit & Loss Balance of profit and Loss account 60,000 + Post Acquisition Profits 13,500 - Revaluation loss on Fixed Assets (M Ltd.) 10,000 63,500 Fixed Assets: M Ltd.: (1,20,000-10,000 Revenue Loss) 1,10,000 D Ltd.: (18,000+3,000 Revenue Profit) 21,000 1,31,000 Consolidated Balance Sheet Particulars Amount ₹ I. Equity & Liabilities Shareholders' Fund (a) Share Capital 1,50,000 (b) Reserves & Surplus General Reserves 15,000 Profit & Loss Account 63,500 Capital Reserve 9,000 Non-Current Liabilities : Minority interest 15,000 Current Liabilities Creditors 34,000 Bills payable 14,100 Total 3,00,600 II. Assets Non-Current Assets 1,31,000 Fixed Assets Current Assets Debtors 45,000 Stock 1,05,000 Bills Receivables 19,100 Total 3,00,600 Note: If one company has issued bill to the other company, the amount of the bills still in the hands of receiving company is treated as mutual bills and deducted accordingly. Inter company owning means the amount owned by one company to other company. The fixed assets of D Ltd. are under valued by ₹3,000. It means the value given with balance sheet is lower than the actual value by ₹3,000 will be added to the book value and so there is a profit on revaluation. The point is reversed in case of M. Ltd. and so there is loss ₹10,000 on revaluation. B/P = 10,000+8,500-(6,000+5,000) 40% = 14,100, B/R = 11,500+12,000-(6,000+5000) 40% = 19,100