Urgent - problem of holding co

Dear Friends,

Please calculate the profit & loss Balance( Pre & post) & capital / Goodwill on consolidation  to be considered for the purpose of analysis of networth for the following.

date of Acquistion- 1.10.04

Profit for the year ended  of S Ltd 31.3.2005- 82,000

Profit as on 1.4.05 of S Ltd is 30,000/-

Balance sheet period is 1.4.04 to 313.05.

The company i.e S ltd declared a dividend of 10% .

Share capital of S Ltd is 2,00,000/- (20,000) shares of Rs 10/ each

Investment in shares of S Ltd -done by H ltd is 16000 shares purchased at 340000/-

Please do the needful.

Replies (1)

     ACQUISITION  OF PROFIT

                                                                         CAPITAL               REVENUE         TOTAL

PROFIT                                                        30000                      52000                 82000

TIME ADJUSTMENT                                 26000                      (26000)

                                                                    -----------                     -----------

                                                                    56000                        26000

                                  80%                          44800                       20800

                                 20%                           11200                       5200

                                                                     -----------                   -----------

 

 

CALCULATION OF GOODWILL/ CAPETAL RESERVE 

INVESTMENT                     =   340000

(-) CAPITAL PROFIT         =       44800

(-) DIVIDEND                     =       16000

(-) ESC                               =     160000

                                                 --------------

                                                    119200

                                                  --------------

Profit as on 1.4.05 of S Ltd is 30,000/-

IT SHOULD BE "PROFIT AS ON 1.4.04 OF S. LTD IS 3000/-

 

IN THIS QUESTION, THE INFORMATION ABOUT DIVIDEND IS NOT COMPLETE,

SO IT HAS BEEN ASSUMED THAT THE DIVIDEND IS OF LAST FINANCIAL YEAR AND HAS BEEN DECLARED AFTER THE ACQUISITION OF SHARES BY HOLDING CO.

 

  ITIIYIT ITIS

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