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5. Value of Plant & Machinery: Rs
PN Ltd. 7,48,800
SR Ltd. 4,21,200
Add: Appreciation on 1.10.2019 1,79,400
6,00,600
Add: Depreciation for 2nd half charged on pre-revalued value 23,400
Less: Depreciation on Rs 6,24,000 for 6 months (31,200) 5,92,800
13,41,600
6. Consolidated Profit & Loss account Rs

PN Ltd. (as given) 1,78,400
Less: Dividend (52,416) 1,25,984
Share of PN Ltd. in post-acquisition profits (W.N.2) 77,518
2,03,502

Q21. (March 21 – 14 Marks)

DEF Ltd. acquired 100% ordinary shares of Rs. 100 each of XYZ Ltd. on 1st October 20X1. On 31st March,
20X2 the summarised Balance Sheets of the two companies were as given below:

DEF Ltd. XYZ Ltd.
Assets
Property Plant Equipment
Land & Buildings 15,00,000 18,00,000
Plant & Machinery 24,00,000 13,50,000
Investment in XYZ Ltd. 34,00,000 -
Inventory 12,00,000 3,64,000
Financial Assets
Trade Receivable 5,98,000 4,00,000
Cash 1,45,000 80,000
Total 92,43,000 39,94,000
Equity & Liabilities
Equity Capital (Shares of Rs. 100 each fully paid) 50,00,000 20,00,000

Other Equity
Other reserves 24,00,000 10,00,000
Retained Earnings 5,72,000 8,20,000
Financial Liabilities
Bank Overdraft 8,00,000 -
Trade Payable 4,71,000 1,74,000
Total 92,43,000 39,94,000
The retained earnings of XYZ Ltd. showed a credit balance of Rs. 3,00,000 on 1st April 20X1 out of which a

dividend of 10% was paid on 1st November; 20X1 DEF Ltd. has recognised the dividend received to profit or
loss account; Fair Value of Plant & Machinery as on 1st October 20X1 was Rs. 20,00,000. The rate of
depreciation on plant & machinery is 10%.
Following are the increases on comparison of Fair value as per respective Ind AS with Book value as on 1st
October 20X1 which are to be considered while consolidating the Balance Sheets.

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