Page 56 - 16. COMPILER QB - INDAS 103

QUESTIONS FROM PAST EXAM PAPERS

Q23. (May 18 – 15 Marks) (Similar to Q20 & Q21)

Hold Limited acquired 100% ordinary shares of Rs 100 each of Sub Limited on 1st October, 2017. On 31st
March, 2018 the summarized Balance Sheets of the two companies were as given below:
Particulars Hold Limited Sub Limited
(Rs) (Rs)
I. Assets
(1) Non-current Assets
(i) Property, Plant & Equipment 30,00,000 36,00,000
(a) Land & Building 48,00,000 27,00,000
(b) Plant & machinery
(ii) Investment in Sub Limited 68,00,000

(2) Current Assets 24,00,000 7,28,000
(i) Inventory 11,96,000 8,00,000
(ii) Financial Assets 2,90,000 1,60,000
(a) Trade Receivables
(b) Cash & Cash Equivalents

Total 1,84,86,000 79,88,000
II Equity and Liabilities
(1) Equity 1,00,00,000 40,00,000
(i) Equity Share Capital (Shares of Rs 100 each fully
paid)
(ii) Other Equity 48,00,000 20,00,000
(a) Other Reserves 11,44,000 16,40,000
(b) Retained Earnings
(2) Current Liabilities 16,00,000 -
Financial Liabilities 9,42,000 3,48,000
(a) Bank Overdraft
(b) Trade Payable
Total 1,84,86,000 79,88,000
The retained earnings of Sub Limited showed a credit balance of Rs 6,00,000 on 1st April, 2017 out of which a
dividend of 10% was paid on 1st November 2017. Hold Limited has credited the dividend received to retained
earnings account. There was no fresh addition to other reserves in case of both companies during the current
financial year. There was no opening balance in the retained earnings in the books of Hold Limited.

Following are the changes in fair value as per respective Ind AS from the book value as on 1st October, 2017 in
the books of Sub Limited which is to be considered while consolidating the Balance Sheets.
(i) Fair value of Plant and Machinery was Rs 40,00,000. (Rate of depreciation on Plant and Machinery is 10%
p.a.)
(ii) Land and Building appreciated by Rs 20,00,000.

(iii) Inventories increased by Rs 3,00,000.
(iv) Trade payable increased by Rs 2,00,000.
Prepare Consolidated Balance Sheet as on 31st March, 2018. The Balance Sheet should comply with the
relevant lnd AS and Schedule III of the Companies Act, 2013.
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