Star Ltd. and its subsidiary Moon Ltd. Give the following information as on 31st March, 2026: Star Ltd. (₹) Moon Ltd. (₹) Share Capital Equity Share…

Consolidated Balance Sheet of Star Ltd. and its Subsidiary Moon Ltd. as at 31st March, 2026 Particulars Note No. ₹ I. Equity and Liabilities (1) Shareholder's Funds (a) Share Capital 12,00,000 (1,20,000 equity shares of ₹ 10 each) (b) Reserves and Surplus 1 8,16,200 (2) Minority Interest (W.N.4) 99,300 (3) Current Liabilities (a) Trade Payables 2 4,10,000 Total 25,25,500 II. Assets (1) Non-current assets (i) Property, plant and equipment 3 13,10,500 (ii) Intangible assets 4 24,000 (2) Current assets (i) Inventories 5 3,25,000 (ii) Trade Receivables 6 6,70,000 (iii) Cash at Bank 7 1,96,000 Total 25,25,500 Notes to Accounts ₹ 1. Reserves and Surplus General Reserves 4,35,000 Add: 80% share of Moon Ltd.'s post-acquisition reserves (W.N.3) 84,000 5,19,000 Profit and Loss Account 2,80,000 Add: 80% share of Moon Ltd.'s post-acquisition profits (W.N.3) 21,200 Less: Unrealised gain (4,000) 17,200 2,97,200 8,16,200 2. Trade Payables Star Ltd. 3,22,000 Moon Ltd. 1,23,000 Less: Mutual transaction (35,000) 4,10,000 3. Property, plant and equipment Machinery Star Ltd. 6,40,000 Moon Ltd. 2,00,000 Add: Appreciation 1,00,000 3,00,000 Less: Depreciation (30,000) 2,70,000 9,10,000 Furniture Star Ltd. 3,75,000 Moon Ltd. 40,000 Less: Decrease in value (10,000) 30,000 Less: Depreciation (4,500) 25,500 4,00,500 13,10,500 4. Intangible assets Goodwill [WN 5] 24,000 5. Inventories Star Ltd. 2,68,000 Moon Ltd. 62,000 Less: Inventory reserve (5,000) 3,25,000 6. Trade Receivables Star Ltd. 4,70,000 Moon Ltd. 2,35,000 7,05,000 Less: Mutual Transaction (35,000) 6,70,000 7. Cash and Bank Star Ltd. 1,64,000 Moon Ltd. 32,000 1,96,000 Working Notes: 1. Profit or loss on revaluation of assets in the books of Moon Ltd. and their book values as on 1.4.2025 ₹ Machinery Revaluation as on 1.4.2025 3,00,000 Less: Book value as on 1.4.2025 (2,00,000) Profit on revaluation 1,00,000 Furniture Revaluation as on 1.4.2025 30,000 Less: Book value as on 1.4.2025 (40,000) Loss on revaluation (10,000) 2. Calculation of short/excess depreciation Machinery Furniture Upward/ (Downward) Revaluation 1,00,000 (10,000) Rate of depreciation 10% p.a. 15% p.a. Difference [(short)/excess] (10,000) 1,500 3. Analysis of reserves and profits of Moon Ltd. as on 31.03.2026 Pre-acquisition profit +upto 1.4.2025 (Capital profits) Post-acquisition profits (1.4.2025-31.3.2026) General Reserve Profit and loss account General reserve as on 31.3.2026 50,000 1,05,000 Profit and loss account as on 31.3.2026 30,000 35,000 Upward Revaluation of machinery as on 1.4.2025 1,00,000 Downward Revaluation of Furniture as on 1.4.2025 (10,000) Short depreciation on machinery (10,000) Excess depreciation on furniture 1,500 Total 1,70,000 1,05,000 26,500 4. Minority Interest ₹ Paid-up value of (2,00,000 x 20%) 40,000 Add: 20% share of pre-acquisition profits and reserves [(20% of (50,000 + 30,000)] 16,000 20% share of profit on revaluation 18,000 20% share of post-acquisition reserves 21,000 20% share of post-acquisition profit 5,300 1,00,300 Less: Unrealised Profit on Inventory (55,000 x 10/110) x 20% (1,000) 99,300 5. Cost of Control or Goodwill Cost of Investment 3,20,000 Less: Paid-up value of 80% shares 1,60,000 80% share of pre-acquisition profits and reserves (₹ 64,000 + ₹ 72,000) 1,36,000 (2,96,000) Cost of control or Goodwill 24,000