The Balance Sheet of H Ltd. and S Ltd. as on 31.03.2020 were as follows: Particulars Note No. H Ltd. (₹) S Ltd. (₹) I. EQUITY AND LIABILITIES (1) Shareholders' Funds (a) Share Capital Equity share of ₹100 each 6,00,000 2

Consolidated Balance Sheet of H Ltd. and S Ltd As on 31st March, 2020 Particulars Notes to Accounts Amount (₹) I. EQUITY AND LIABILITIES (1) Shareholder's Funds: (a) Share Capital 6000 Equity shares of ₹100 each 6,00,000 (b) Reserves and Surplus (i) General Reserve (W.N.6) 1,08,000 (ii) Profit and Loss A/c (W.N. 5) 1,92,080 (2) Minority Interest (W. No. 2) 84,320 (3) Current Liabilities: Trade Payables Creditor (70000+60000-20000) 1,10,000 Other Current liabilities (Income tax) (60000+70000) 1,30,000 Total 12,24,400 II. ASSETS (1) Non-Current Assets: 1. Fixed Assets (i) Tangible Assets Machinery (W.N.4) 2,79,600 Vehicle (130000+50000) 1,80,000 Furniture (50000+30000) 80,000 (ii) Intangible Assets Goodwill (W.N.3) 1,96,800 (2) Current Assets: Inventories - Stock (W.N. 3) 2,06,000 Trade Receivable - Debtor (60000+100000-20000) 1,40,000 Cash and Cash Equivalent (80000+62000) 1,42,000 Total 12,24,400 Working Notes: (1) Degree of control (H Ltd.) = (2000 Shares)/(2500 shares) = 80% Minority = 20% (2) Calculation of H Ltd. Share and Minority Interest Particulars Total (₹) H Ltd. Share 80% Minority Interest 20% (a) Capital Profit 1. Pre-acquisition Profit 30,000 Less: 12% Dividend for 2018-19 (30,000) 2. Pre-acquisition General Reserve 50,000 3. Revaluation Profit (1,44,000-1,20,000) 24,000 Total 74,000 59,200 14,800 (b) Post-Acquisition Profit Profit as per Balance Sheet 90,000 Less: Balance of pre- acquisition profit Nil Less: Depreciation (W.N.7) (2400) Total 87,600 70,080 17,520 (c) Post-Acquisition Reserve General reserve as per B/S 60,000 Less: Pre-acquisition general reserve (50,000) 10,000 8,000 2,000 (d) Share Capital 2,50,000 Minority Interest (2,50,000 x 1/5) 50,000 H Ltd. Share (2,50,000 x 4/5) 2,00,000 Total Minority Interest 84,320 (3) Calculation of Goodwill / Capital Reserve Cost of Investment: ₹3,80,000 Less: Capital Profit of H Ltd. Share: (₹59,200) Less: Dividend of 2018-19 (4/5 of ₹30,000): (₹24,000) Total: ₹2,96,800 Less: Face Value of Shares held by H Ltd.: (₹2,00,000) Goodwill: ₹96,800 Add: Goodwill of H Ltd. and S Ltd. as per B/S (60,000+40,000): ₹1,00,000 Total Goodwill: ₹1,96,800 (4) Valuation of Machinery & Stock (a) Machinery (1,50,000+1,08,000): ₹2,58,000 Add: Revaluation Profit: ₹24,000 Total: ₹2,82,000 Less: Under Depreciation: (₹2,400) Total: ₹2,79,600 (b) Stock (70,000+1,40,000): ₹2,10,000 Less: Unrealised Profit on Stock 25/125 x 20,000: (₹4,000) Total: ₹2,06,000 (5) Profit and Loss Account H Ltd.'s Profit Balance: ₹1,50,000 Less: Dividend of 2018-19 wrongly credited to profit and loss a/c (4/5 of ₹30,000): (₹24,000) Total: ₹1,26,000 Less: Unrealized Profit on Stock: (₹4,000) Total: ₹1,22,000 Add: Share of Profit from S Ltd.: ₹70,080 Total: ₹1,92,080 (6) General Reserve H Ltd.: ₹1,00,000 Share from S Ltd.: ₹8,000 Total: ₹1,08,000 (7) Depreciation under Charged on Machinery (i) Depreciation charged during the year = (₹1,20,000 - ₹1,08,000) = ₹12,000 (ii) Rate of depreciation = (12000/120000) x 100 = 10% (iii) Depreciation under charged = 10% (₹1,44,000 - ₹1,20,000) = ₹2,400