24.09.

2020
Holding and Subsidiary Company
I. 100 % Holding

1. Ex.No. 23 – 14.80

Solution
Calculation of Goodwill/ Capital Reserve
Subsidiary Company (S Ltd.,)
Particulars Amoun Amount
t
Share capital 6,000
Reserves 2,000
P & L A/c 1,000
9,000
Less : Payment 7,500
Capital 1,500
Reserve

Working Notes for Balance Sheet

Note No. Particulars Amoun Amount
t
1 Share Capital
 H Ltd 12,000

2 Reserves & Surplus

Reserves – H Ltd., 3,000
P & L A/c – H Ltd., 2,000
Capital Reserve 1,500 6,500

3 Sundry Liabilities
H Ltd., 10,500
S Ltd., 3,000 13,500

4 Sundry Assets
H Ltd., 20,000
S Ltd., 12,000 32,000

Consolidated Balance sheet as on 31.03.1987

Particulars Note no. Amoun Amount
t
Equity and
Liabilities

I. Shareholders Fund
i) Share capital 1 12,000
ii) Reserves & Surplus 2 6,500

II. Sundry Liabilities 3 13,500

Total Liabilities 32,000

Assets
I. Sundry Assets 4 32,000
Total Assets 32,000
II. Goodwill 100 %
2.

Calculation of Goodwill/ Capital Reserve

Subsidiary Company (S Ltd.,)
Particulars Amount Amount
Share capital 2,00,000
Reserves --
2,00,000
Less : 2,10,000
Payment
Goodwill 10,000

Working Notes for Balance Sheet

Note No. Particulars Amount Amount

1 Share Capital
H Ltd 5,00,000

2 Reserves &
Surplus
 Reserves – H Ltd., 1,00,000
1,00,000
3 Trade Payable
H Ltd., 80,000
S Ltd., 60,000
1,40,000
4 Sundry Assets
H Ltd., 4,70,000
S Ltd., 2,60,000 7,30,000

5 Intangible asset
Goodwill 10,000

Consolidated Balance sheet as on 31.03.2017

Particulars Note no. Amoun Amount
t
Equity and
Liabilities

I. Shareholders Fund
i) Share capital 1 5,00,000
ii) Reserves & Surplus 2 1,00,000

II. Trade Payable 3 1,40,000

Total Liabilities 7,40,000

Assets
I. Sundry Assets 4 7,30,000
II. Intangible asset 5 10,000
Total Assets 7,40,000
3.

Calculation of Goodwill/ Capital Reserve

Subsidiary Company (S Ltd.,)
Particulars Amount Amount
Share capital 50,000
Reserves 4,000
P & L a/c 5,000
59,000
Less : 75,000
Payment
Goodwill 16,000

Working Notes for Balance Sheet

Note Particulars Amount Amount

No.
1 Share Capital
H Ltd 1,00,000
 2 Reserves & Surplus
Reserves – H Ltd., 10,000
Profit and loss A/c H Ltd 20,000
30,000
3 Trade Payable
H Ltd., 10,000
S Ltd., 1,000
11,000
4 Sundry Assets
H Ltd., 65,000
S Ltd., 60,000
1,25,000
5 Intangible asset
Goodwill 16,000

Consolidated Balance sheet as on 31.03.2017

Particulars Note no. Amoun Amount
t
Equity and
Liabilities

I. Shareholders Fund
i) Share capital 1 1,00,000
ii) Reserves & Surplus 2 30,000

II. Trade Payable 3 11,000

Total Liabilities 1,41,000

Assets
I. Sundry Assets 4 1,25,000
II. Intangible asset 5 16,000
Total Assets 1,41,000

III. Elimination of Fictitious Assets

4.
Calculation of Goodwill/ Capital Reserve
60% - Holding , 40% - Minority Interest
Subsidiary Company (S Ltd.,)
Particulars Amoun Amount
t
Share capital – 2,00,000*60% 1,20,000
Reserves 50,000 * 60% 30,000
1,50,000
Less: Preliminary expenses 3,600
6,000*60%
1,46,400
Less : Payment 1,62,400
Goodwill 16,000

Calculation of Minority Interest

Particulars Amoun Amount
t
Share capital – 2,00,000*40% 80,000
Reserves 50,000 * 40% 20,000
1,00,000
Less: Preliminary expenses 2,400
6,000*40%
97,600
Working Notes for Balance Sheet

Note No. Particulars Amount Amount

1 Share Capital
H Ltd 5,00,000

2 Reserves &
Surplus
Reserves – H Ltd., 1,00,000
Minority Interest 97,600
1,97,600

3 Trade Payable
H Ltd., 80,000
S Ltd., 60,000
1,40,000
4 Sundry Assets
H Ltd., 5,17,600
S Ltd., 3,04,000
8,21,600
5 Intangible asset
Goodwill 16,000
 Consolidated Balance sheet as on 31.03.1996
Particulars Note no. Amoun Amount
t
Equity and
Liabilities

I. Shareholders Fund
i) Share capital 1 5,00,000
ii) Reserves & Surplus 2 1,97,600

II. Trade Payable 3 1,40,000

Total Liabilities 8,37,600

Assets
I. Sundry Assets 4 8,21,600
II. Intangible asset 5 16,000
Total Assets 8,37,600

IV. Minority Interest

5.

Ans: Rs.8,20,000

Calculation of Goodwill/ Capital Reserve

60% - Holding , 40% - Minority Interest
Subsidiary Company (S Ltd.,)
Particulars Amount Amount
 Share capital – 1,20,000
2,00,000*60%
Reserves ---
1,20,000
Less : Payment 1,20,000
---

Calculation of Minority Interest

Particulars Amount Amount
Share capital – 80,000
2,00,000*40%
Reserves --
80,000

Working Notes for Balance Sheet

Note No. Particulars Amount Amount

1 Share Capital
H Ltd 5,00,000

2 Reserves &
Surplus
Reserves – H Ltd., 1,00,000
Minority Interest 80,000
1,80,000

3 Trade Payable
H Ltd., 80,000
S Ltd., 60,000
1,40,000
4 Sundry Assets
H Ltd., 5,60,000
S Ltd., 2,60,000
8,20,000

Consolidated Balance sheet as on 31.03.2016

Particulars Note no. Amoun Amount
t
Equity and
Liabilities

I. Shareholders Fund
 i) Share capital 1 5,00,000
ii) Reserves & Surplus 2 1,80,000

II. Trade Payable 3 1,40,000

Total Liabilities 8,20,000

Assets
I. Sundry Assets 4 8,20,000
Total Assets 8,20,000

6.

Shares in S Ltd., - 5,000 shares

H ltd., taken – 4,000 shares – 4,000/5,000 - 4/5
Minority interest (5,000-4,000) – 1,000 shares - 1,000/5,000 – 1/5

Calculation of Goodwill/ Capital Reserve

Particulars Amount Amount
 Share capital – 4,000
5,000*4/5
Reserves ---
4,000
Less : Payment 4,000
--

Calculation of Minority Interest

Particulars Amount Amount
Share capital – 1,000
5,000*1/5
Reserves --
1,000

Working Notes for Balance Sheet

Note No. Particulars Amount Amount

1 Share Capital
H Ltd 12,000 12,000

2 Reserves &
Surplus
Minority Interest 1,000

3 Trade Payable
H Ltd., 8,000
S Ltd., 3,000 11,000

4 Sundry Assets
H Ltd., 16,000
S Ltd., 8,000 24,000

Consolidated Balance sheet as on 31.03.2014

Particulars Note no. Amoun Amount
t
Equity and
Liabilities

I. Shareholders Fund
i) Share capital 1 12,000
ii) Reserves & Surplus 2 1,000
II. Trade Payable 3 11,000
Total Liabilities 24,000

Assets
I. Sundry Assets 4 24,000
Total Assets 24,000