Page 18 - 35. FR APRIL 22 MTP QP ANSWERS

SS Ltd. 50 338

3. Trade Receivable
P Ltd. 260
S Ltd. 100
SS Ltd. 220 580
4. Bills Receivable

P Ltd. (72-70) 2
S Ltd. (30-30) - 2
5. Cash & Cash equivalents

P Ltd. 228
S Ltd. 40
SS Ltd. 40 308
6. Trade Payables
P Ltd. 470

S Ltd. 230
SS Ltd. 180 880

Working Notes:
1. Analysis of Reserves and Surplus (` in lakh)

S Ltd. SS Ltd.
Reserves as on 31.3.20X1 80 60
Increase during the year 20X1-20X2 20 20

Increase for the half year till 30.9.20X1 10 10
Balance as on 30.9.20X1 (A) 90 70
Total balance as on 31.3.20X2 100 80
Post-acquisition balance 10 10

Retained Earnings as on 31.3.20X1 20 30
Increase during the year 20X1-20X2 30 30
Increase for the half year till 30.9.20X1 15 15
Balance as on 30.0.20X1 (B) 35 45

Total balance as on 31.3.20X2 50 60
Post-acquisition balance 15 15
Less: Unrealised Gain on inventories (10 ÷ 100 x 25) - (2)
Post-acquisition balance for CFS 15 13

Total balance on the acquisition date ie.30.9.20X1 125 115
(A+B)
2. Calculation of Effective Interest of P Ltd. in SS Ltd.
Acquisition by P Ltd. In S Ltd. = 80%
Acquisition by S Ltd. In SS Ltd. = 75%
Acquisition by Group in SS Ltd. (80% x 75%) = 60%
Non-controlling Interest = 40%

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