Working Notes 1 Analysis of reserves and profits of subsidiaries Rs in lakhs

Working notes 1 analysis of reserves and profits of

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Working Notes: 1. Analysis of reserves and profits of subsidiaries : Rs. in lakhs Pre-acquisition capital profit Post-acquisition General Profit and Loss Reserve Account Cee Ltd. General reserve 2,550 600 Profit and loss account on 31.3.2004 900 Less: Dividend 750 150 ___ 1,050 2,700 600 1,050 Share of Bee Ltd. (60%) 1,620 360 630 Minority interest (40%) 1,080 240 420 Rs. in lakhs Pre-acquisition capital profit Post-acquisition Preliminary Profit and Loss Expenses Account written off Dee Ltd. Profit and loss account (360) 1,110 Preliminary expenses (30) 15 _____ Less: Dividend (390) 15 1,110 Share of Bee Ltd. (80%) (312) 12 888 Minority interest (20%) (78) 3 222
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FINAL EXAMINATION : NOVEMBER, 2005 6 2 . Minority Interest (Rs. in lakhs) Cee Ltd. Share capital 3,000 Capital (pre-acquisition) profits 1,080 Revenue (post-acquisition) profits: General reserve 240 Profit and loss account 420 1,740 4,740 Dee Ltd. Share capital 600 Capital (pre-acquisition) profits/(losses) (78) Revenue (post-acquisition) profits 222 Add: Preliminary expenses written off 3 225 147 747 5,487 3. Cost of Control (Rs. in lakhs) Cee Ltd. Investment 6,750 Less: Dividend received and wrongly credited to profit and loss account 450 6,300 Less: Paid-up share capital (60%) 4,500 Capital profits 1,620 6,120 180 Dee Ltd. Investment in shares 2,160 in debentures 294 2,454 Less: Paid-up share capital (80%) 2,400 Nominal value of debentures 300 Capital profits (312) 2,388 66 Cost of control - Goodwill 246
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PAPER – 1 : ADVANCED ACCOUNTING 7 4. Consolidated general reserve and profit and loss account General reserve Profit and loss account Bee Ltd. 33,000 9,000 Less: Wrong dividend credited - 450 33,000 8,550 Cee Ltd. 360 630 Dee Ltd. (888 + 12) - 900 33,360 10,080 Less: Unrealised profit on stock - 40 33,360 10,040 5. Mutual owing regarding bills Rs. (150 – 45) lakhs = Rs. 105 lakhs. 6. Unrealised profit lakhs 40 Rs. lakhs 125 25 200 Rs. = ° ± ² ³ ´ µ × 7. Amount of dividend wrongly credited to profit and loss account by Bee Ltd. 60% of Rs. 750 lakhs = Rs. 450 lakhs. Question 2 (a) On the basis of the following Profit and Loss Account of Zed Limited and the supplementary information provided thereafter, prepare Gross Value Added Statement of the company for the year ended 31st March, 2005. Also prepare another statement showing reconciliation of Gross Value Added with Profit before Taxation. Profit and Loss Account of Zed Limited for the year ended 31st March, 2005. Amount Amount (Rs. in lakhs) (Rs. in lakhs) Income Sales 5,010 Other Income 130 5,140 Expenditure Production and Operational Expenses 3,550 Administrative Expenses 185 Interest 235 Depreciation 370 4,340
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FINAL EXAMINATION : NOVEMBER, 2005 8 Profit before Taxation 800 Provision for Taxation 280 Profit after Taxation 520 Credit Balance as per last Balance Sheet 40 560 Appropriations Transfer to General Reserve 100 Preference Dividend (Interim) paid 50 Proposed Preference Dividend (Final) 50 Proposed Equity Dividend 300 Balance carried to Balance Sheet 60 560 Supplementary Information Production and Operational Expenses consist of: Raw Materials and Stores consumed 1,900 Wages, Salaries and Bonus 610 Local Taxes including Cess 220 Other Manufacturing Expenses 820 3,550 Administrative Expenses consist of: Salaries and Commission to Directors 60 Audit Fee 24 Provision for Bad and Doubtful Debts 20 Other Administrative Expenses 81 185 Interest is on:
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