Prepare a consolidated balance sheet of MN Ltd. and its subsidiary RP Ltd. as on 31 st March, 2025: Balance Sheets as on 31 st March, 2025 Note No.…

Consolidated Balance Sheet of MN Ltd. and its subsidiary RP Ltd. as at 31 st March, 2025 Particulars Note No. (₹ in Lakhs) I. Equity and Liabilities (1) Shareholder's Funds (a) Share Capital 1 7,000 (b) Reserves and Surplus 2 6,610 (2) Minority Interest [W.N.4] 1,870 (3) Non-Current Liability Long term borrowings (1,800 Lakhs + 1,400 Lakhs -280 Lakhs) 2,920 (4) Current Liabilities Trade payables (2,280 Lakhs +1,600 Lakhs) 3,880 Total 22,280 II. Assets (1) Non-current assets Property, Plant and Equipment 3 12,300 (2) Current assets (a) Inventories 3,680 (b) Trade receivables 4 3,000 (c) Cash and cash equivalents 3,300 Total 22,280 Notes to Accounts: (in Lakhs) (in Lakhs) 1. Share Capital Authorized share capital Equity shares of 10each, fully paid up Issued and Subscribed: 700 Lakhs Equity shares of 10each, fully paid up 7,000 Total 7,000 2. Reserves and surplus Capital Reserve 2,100 General Reserve 2,900 Profit and Loss Account: 1,610 Total 6,610 3. Property, plant and equipment Land and Buildings MN Ltd. 4,000 Lakhs RP Ltd. 3,500 Lakhs 7,500 Plant and Machinery MN Ltd. 2,800 Lakhs RP Ltd. 2,000 Lakhs 4,800 12,300 4. Trade receivables Debtors MN Ltd. 1,200 Lakhs RP Ltd. 900 Lakhs 2,100 Bills Receivable MN Ltd. 600 Lakhs RP Ltd. 300 Lakhs 900 3,000 Working Notes: 1. RP Ltd.'s General Reserve Account Particulars ₹ in lakhs Particulars ₹ in lakhs To Balance c/d 2,000 By Balance b/d 1600 By Profit and Loss A/c (Balancing figure) 400 2,000 2,000 2. RP Ltd.'s Profit and Loss Account Particulars ₹ in lakhs Particulars ₹ in lakhs To General Reserve [WN 1] 400 By Balance b/d 1,200 By Net Profit for the Year (Balancing figure) 1,180 To Dividend paid (12% on 4,000 lakhs) 480 To Balance c/d 1,500 2,380 2,380 3. Calculation of Minority Interest Particulars ₹ in lakhs Equity share capital (₹ 4,000 Lakhs *25%) 1,000 Pre acquisition Profit 580 Share in Revenue Profit (100+190) 290 Total 1,870 4. Analysis of Profit Particulars Capital Profit Pre Acq. Revenue Profit General Reserve Profit & Loss ₹ in lakhs ₹ in lakhs ₹ in lakhs Opening Balance in General Reserve 1,600 Add: Transfer from Profit & Loss Opening Bal in Profit & Loss Add: Profit earned in C.Y. Less: Dividend paid Less: Transfer to General Reserve Less: Unrealised profit 80*40 / 160 Total MN Ltd. (75%) Minority interest (25%) 5. Calculation of Cost of Control Particulars Computation ₹ in Lakhs Cost of Investment Given 3,000 (-) Dividend received out of Pre acquisition Profit 4,000*12%*75% (360) Subtotal (A) 2,640 Share in Net Assets of RP Ltd Share Capital 4,000*75% 3,000 Pre Acq. Profit W.N.2 1,740 Subtotal (B) 4,740 Goodwill/(CR) (A - B) (2,100) 6. Profit & Loss & General Reserve of MN Ltd. Particulars General Reserve ₹ in Lakhs Profit & Loss ₹ in Lakhs Balance as per Balance Sheet 2,600 1,400 Share in Post Acq. Profit of RP Ltd 300 570 (-) Dividend (4,000*12%*75%) (360) Total 2,900 1,610