From the following information of Kedar Ltd. and its subsidiary Vijay Ltd. at 31st March, 2024, prepare a consolidated balance sheet as at that…

Consolidated Balance Sheet of Kedar Ltd. and its Subsidiary Vijay Ltd. as at 31st March, 2024 Particulars Note No. (₹) I. Equity and Liabilities (1) Shareholder's Funds (a) Share Capital 15,00,000 (b) Reserves and Surplus 1 8,61,500 (2) Minority Interest (W.N.5) 1,20,375 (3) Current Liabilities (a) Trade Payables 2 5,17,500 Total 29,99,375 II. Assets (1) Non-current assets (i) Property, plant & Equipment 3 14,94,375 (ii) Intangible assets 4 30,000 (b) Other non- current assets 5 14,75,000 Total 29,99,375 Notes to Accounts ₹ 1. Reserves and Surplus Reserves 5,00,000 Add: 4/5th share of Vijay Ltd.'s post-acquisition reserves (W.N.3) 1,00,000 6,00,000 Profit and Loss Account 2,50,000 Add: 4/5th share of Vijay Ltd.'s post-acquisition profits (W.N.4) 11,500 2,61,500 8,61,500 2. Trade Payables Kedar Ltd. 3,75,000 Vijay Ltd. 1,42,500 5,17,500 3. Property, plant & Equipment Machinery Kedar Ltd. 7,50,000 Vijay Ltd. 2,50,000 Add: Appreciation 1,25,000 3,75,000 Less: Depreciation (37,500) 3,37,500 Furniture Kedar Ltd. 3,75,000 Vijay Ltd. 50,000 Less: Decrease in value (12,500) 37,500 Less: Depreciation (5,625) 31,875 14,94,375 4. Intangible assets Goodwill [WN 6] 30,000 5. Other non-current assets Kedar Ltd. 11,00,000 Vijay Ltd. 3,75,000 14,75,000 Working Notes: ₹ 1. Pre-acquisition profits and reserves of Vijay Ltd. Reserves 62,500 Profit and Loss Account 37,500 1,00,000 Kedar Ltd.'s = 4/5 × 1,00,000 80,000 2. Profit on revaluation of assets of Vijay Ltd. Profit on Machinery (3,75,000 – 2,50,000) 1,25,000 Less: Loss on Furniture (50,000 – 37,500) 12,500 Net Profit on revaluation 1,12,500 Kedar Ltd.'s share 4/5 × 1,12,500 90,000 Minority Interest 1/5 × 1,12,500 22,500 3. Post-acquisition reserves of Vijay Ltd. Post-acquisition reserves (Total reserves less pre-acquisition reserves = 1,87,500 – 62,500) 1,25,000 Kedar Ltd.'s share 4/5 × 1,25,000 1,00,000 Minority interest 1/5 × ,25,000 25,000 4. Post-acquisition profits of Vijay Ltd. Post-acquisition profits (Profit & loss account balance less pre-acquisition profits = 62,500 – 37,500) 25,000 Add: Excess depreciation charged on furniture @ 15% on 12,500 i.e. (50,000 – 37,500) 1,875 26,875 Less: Under depreciation on machinery @ 10% on 1,25,000 i.e. (3,75,000 – 2,50,000) (12,500) Adjusted post-acquisition profits 14,375 Kedar Ltd.'s share 4/5 × 14,375 11,500 Minority Interest 1/5 × 14,375 2,875 5. Minority Interest Paid-up value of (2,500 – 2,000) = 500 shares held by outsiders i.e. 500 × ₹ 100 50,000 Add: 1/5th share of pre-acquisition profits and reserves 20,000 1/5th share of profit on revaluation 22,500 1/5th share of post-acquisition reserves 25,000 1/5th share of post-acquisition profit 2,875 1,20,375 6. Cost of Control or Goodwill Paid-up value of 2,000 shares held by Kedar Ltd. i.e. 2,000 × ₹ 100 2,00,000 Add: 4/5th share of pre-acquisition profits and reserves 80,000 4/5th share of profit on the revaluation 90,000 Intrinsic value of shares on the date of acquisition 3,70,000 Price paid by Kedar Ltd. for 2,000 shares 4,00,000 Less: Intrinsic value of the shares (3,70,000) Cost of control or Goodwill 30,000