Illustration of consolidated balance sheet, Financial Accounting

Illustration of consolidated balance sheet

H Ltd owned S Ltd since the date of incorporation of S Ltd. The balance sheets of the two  companies
as at 31 December 20X2 is as follows.

 

 

H Ltd

S Ltd

Non Current assets

£

£

£

£

Tangible - PPE

 

         35,000.00

 

            45,000.00

Investment in S Ltd

 

         45,000.00

 

 

 

 

 

         80,000.00

 

            45,000.00

Current assets

 

 

 

 

Inventory

 

          16,000.00

 

      12,000.00

 

Accounts receivables

           8,000.00

 

       9,000.00

 

Cash at bank

 

            1,000.00

         25,000.00

                  -  

            21,000.00

TOTAL ASSETS

 

        105,000.00

 

            66,000.00

 

 

 

 

 

 

Share Capital

 

         70,000.00

 

            40,000.00

Retained profits

 

          11,000.00

 

            19,000.00

 

 

 

          81,000.00

 

            59,000.00

 

 

 

 

 

 

 

 

Non Current Liabilities

 

 

 

 

10% Loan Stock

 

          10,000.00

 

                        -  

 

 

 

 

 

 

Current Liabilities

 

 

 

 

Bank Overdraft

                      -  

 

       3,000.00

 

Accounts Payable

          14,000.00

          14,000.00

       4,000.00

              7,000.00

 

 

 

        105,000.00

 

            66,000.00

 

 

 

 

 

 

Required;

 

 

 

 

 

Prepare the consolidated balance sheet of H Ltd and S Ltd as at 31 December 20X2

 

Solution

 

Consolidate Balance Sheet of H and S Ltd.. As at 31 December 20x2

NON-CURRENT ASSETS

£

£

Property, plant and equipment (35+45)

 

80,000

Goodwill

 

  5,000

 

 

85,000

CURRENT ASSETS

 

 

Inventory (16+12)

28,000

 

Accounts receivable(8+9)

17,000

 

Cash at bank

  1,000

  46,000

TOTAL ASSETS

 

131,000

Ordinary share capital

 

70,000

Retained profits

 

30,000

 

 

100,000

NON-CURRENT LIABILITIES

 

 

10% Loan stock

 

10,000

CURRENT LIABILITIES

 

 

Bank overdraft

3,000

 

Accounts payables

18,000

  21,000

TOTAL EQUITY AND LIABILITIES

 

131,000

 

 

WORKINGS

 

NOTE:

 

H owns S Ltd. since date of incorporation thus:

 

It owns 100% of S Ltd.. (No minority interest)

There are no pre-acquisition profits (all the profits of share capital are distributable)

 

Cost of control

 

£

 

£

Investment in S

45,000

OSC (40,000 x 100%)

40,000

 

_____

Goodwill (balance figure)

  5,000

 

45,000

 

45,000

 

 

Group retained profits

 

£

 

£

Balance c/d

30,000

H Ltd..

11,000

 

_____

S Ltd..

19,000

 

30,000

 

30,000

Posted Date: 12/12/2012 2:42:18 AM | Location : United States







Related Discussions:- Illustration of consolidated balance sheet, Assignment Help, Ask Question on Illustration of consolidated balance sheet, Get Answer, Expert's Help, Illustration of consolidated balance sheet Discussions

Write discussion on Illustration of consolidated balance sheet
Your posts are moderated
Related Questions
Illustration for company conversion Kamau Maneno and Rotino have carried on partnership for several years, sharing profits and losses equally after allowing for annual salaries

DO ACCOUNTANTS EVER REALLY MAKE IMPORTANT DESIONS?

During its financial year ended 30 June 20x7 Beavers Ltd, an engineering company, has worked on several contracts. Information relating to one of them is given below.

I am an AAT student studying lvl 3 AAT at college. I wish to learn how to complete self assessment end of year tax return forms for other people. That is because I have already bee

Proposed dividends by subsidiary company If the subsidiary company has proposed some dividends appearing under current liabilities then the dividends are payable to the holding c

ASSOCIATE COMPANIES (IAS 28) An associate company is a company in which the investing company owns more than 20% but less than 50% of the voting rights.  This means that the inve

Q. A prior period adjustment that corrects income of a prior period requires that an entry be made to a. an income statement account. b. a current year revenue or expense account.

Sundry Matters 1) The accounting system is also appropriate for departmental accounts. 2) The branch stock account is a practical means of controlling stock at the branch.

Q. Explain bonus or capitalisation issues? A rights issue is a approach of raising finance via the issue of shares to existing equity shareholders. Consecutively to make such a

1. Jim buys only milk and biscuits.    (a) In 2004, Jim earns $100, milk costs $2, biscuits cost $4 per dozen. Draw Jim's budget constraint  (b) Now suppose that all prices i