Problem 1.

Draw up the consolidated balance sheet as at 31 December 2013 from the following
information:
Balance sheet as at 31-12-13

liabilities

H . ltd
Tk

Share capital of Tk. 10

each

200
00

S . Ltd
Tk

Tk

Investment in S
Ltd.

9000

5200

Stock

4000

Debidents

bank
5500

Profit as at 31-12-12
3500
3800
27800

Tk

9700

Loss for 2013

2500

S . Ltd

Shares 1-1-13
bounght on

As at 31-12-12
6500

Profit for 2013

2000

H . ltd

Fixed assets
10000

Profit and loss account.

Assets

2100

17600

creditors

3100
4900
1100
27,80
0

At the balance sheet date S Ltd. Owes H Ltd. Tk. 600 . during the year H Ltd. Sold
goods which had cost Tk. 300 to Ltd. For sold Tk. 500. Three quarters these
goods had been sold by S ltd at the balance sheet date.
Solutions:- working
1. Calculation of Holding ratio:
Holding : Minority = 600:400 =3:2
2. Current years profit

2000 Tk. Only

7200
3800
1400
17,6
00

3. Capital profit:(( Last year profit only)

Share of holdion co.
Share of minority
4. Good will/capital reserve
Paid up value of share (600 sh. @10)
Add. Capital profit

3500
2100
1400
.

= 6000
= 2100
8100
9700
(1600)
.

Less cost price of the share

Good will
5. Revenue profit

Tk. 2000

Share holder company 2000*3/5=1200

And share of minority = 2000*2/3= 800

6. Minority interest:
Paid up value of share (400s h @ Tk. 10)
Add. Capital profit
Add. Revenue profit
Total minority interest

4000
1400
800
6200
.

7. Unrealized profit : cost of unsold goods tk. 300. Which were sold tk.
500, so profit (500-300)=200
So Unrealized profit 200*1/4 = 50
8. Profit and loss account of holding company:
Profit and loss account shown in B/S
4000
Add. Share of profit from S Ltd
1200
.

Less. Unrealized profit

Adjustment profit

5200
(50)
5150
.

.
.

.
.

Consolidated Balance sheet of H Ltd. And its subsidiary S Ltd.

As at 31st Dec. 2013

Liabilities
Capital:
Share capital of
Tk. 10 each
Reserve and
surplus:
P/L account
(working no.8)
Current liability
Creditors:
H Ltd
S Ltd
Less: inter
transaction

Tk.

Tk.

Assets

Tk.

Others fixed
assets
Good will w.1
20000
Fixed assets:
H
S
3800
2100

5150

1600
9000
5200
14200

Stock:
H
S
Less unrealized
profit

5900

Tk.

3100
7200
1030
0
50

600

10250

5300

Debtors:
H
S
Less inter
transaction

Minority
interest (w.6)

4900
3800
8700

6200

Bank:
H
S

600

1100
1400

36650

8100

2500
36650

Problem 02 :
Draw up a consolidated balance sheet as at 31st December 2013 from the
following information :

Liabilities

Share capital
Sundry
creditors

Promi

Tisa

Tk

Tk

2,00,00
0

50000
250000

60,000

2,60,00
0

Assets

Sundry assets
investment
5000 share jin
tisa Ltd

3,00,00
0

Promi

Tisa

Tk

Tk

2,00,00
0

3,00,00
0

60,000

2,60,00
0

Solution :
Working : calculation of good will:
Paid up value of share (5000*10)

Tk. 50,000

Less: cost price at share

Tk. 60,000
.

Tk. 10,000

3,00,00
0

Consolidated balance sheet after acquisition of promi Ltd. And its

subsidiary tisa Ltd.
As at dec. 31, 2013
liabilities

Tk.

assets

Super capital ( Tk. 10 esch)

2,00,000
0

Sundry assets :

Sundry creditor :

Tk.

Promi Ltd. 2,00,000

Tisa Ltd.

3,00,000
.

Promi Ltd.

60,000

Tisa Ltd.

2,50,000
.

5,00,00
0

Good will
3,10,000

10,000

.
.

5,10,000

5,10,00
0