guide me how to work on revaluation of Plant and machinery in balance sheet.
Following are the balance sheets of H. Ltd. and its subsidiary S. Ltd. as at
31st March, 2007 :
Liabilities H. Ltd. S. Ltd.
(Rs.) (Rs.)
Equity share capital :
Shares of Rs.10 each fully paid 6,00,000 2,00,000
General reserve 3,40,000 80,000
Profit and loss account 1,00,000 60,000
Creditors 70,000 35,000
11,10,000 3,75,000
Assets
Plant and machinery 3,90,000 1,35,000
Furniture 80,000 40,000
80% Shares in S. Ltd. (at cost) 3,40,000 —
Stock 1,80,000 1,20,000
Debtors 50,000 30,000
Cash at bank 70,000 50,000
11,10,000 3,75,000
Additional information :
(i) Profit and loss account of S. Ltd. stood at Rs.30,000 on 1st April, 2006 whereas
general reserve stood at Rs.80,000 even on this date.
(ii) H. Ltd. acquired 80% shares in S. Ltd. on 1st October, 2006.
(iii) S. Ltd.’s plant and machinery which stood at Rs.1,50,000 on 1st April, 2006
was considered worth Rs.1,80,000 as on 1st October, 2006, this figure is to be
considered while consolidating the balance sheets.
You are required to prepare consolidated balance sheet as at 31st March, 2007.
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