Accounts of Holding Companies Question Bank
[BCOM 2nd Sem CBCS Pattern 2023]
In this post you will get Accounts of Holding Companies Question Bank for BCOM 2nd SEM CBCS Pattern. In this Question Bank we will cover Questions asked in the following universities exam:
– Dibrugarh UniversityÂ
– Gauhati University
– Assam University
1. (2019) On 31st March, 2019, the Equity & Liabilities and Assets of H Ltd. and its subsidiary company S Ltd. stood as follows:
|
Particulars |
A Ltd. |
B Ltd. |
|
I. Equity and Liabilities: 1. Share Capital: Equity Shares of Rs. 10 each fully paid up 2. Reserves & Surplus: General Reserve Profit & Loss A/c 3. Current Liabilities Sundry Creditors |
8,00,000 1,50,000 90,000 1,20,000 |
2,00,000 70,000 55,000 80,000 |
|
11,60,000 |
4,05,000 |
|
|
II. Assets: 1. Fixed Assets: 2. Investment: 75% Equity Shares in S Ltd. (at cost) 3. Current Assets: Stock Other Current Assets |
 5,50,000 2,80,000  1,05,000 2,25,000 |
 1,00,000 –  1,77,000 1,28,000 |
|
11,60,000 |
4,05,000 |
Draw the Consolidated Balance Sheet as on 31st March, 2019 after taking into consideration the following information also:Â
1)   H Ltd. acquired the shares on 31st July, 2018.
2)Â Â Â S Ltd. earned a profit of Rs. 45,000 for the year ended 31st March, 2019.
3)Â Â Â In January 2019, S Ltd. sold to H Ltd. goods costing Rs. 15,000 for Rs. 20,000. On 31st March, 2019 half of these goods were lying unsold in the godown of H Ltd.
2. (2019 Old Course)Â From the Balance Sheets of H Ltd. and its subsidiary company S Ltd. drawn up on 31st March, 2019, prepare Consolidated Balance Sheet as on that date. On the date of acquisition of the shares, the General Reserve of S Ltd. amounting to Rs. 20,000 and the Surplus A/c balance amounted to Rs. 40,000 (Cr.):
|
Particulars |
H Ltd. (Rs.) |
S Ltd. (Rs.) |
|
I. Equity and Liabilities: 1. Shareholders’ Fund: Share Capital: Shares of Rs. 10 each fully paid up 2. Reserves & Surplus: General Reserve Surplus 3. Current Liabilities: Sundry Creditors |
   10,00,000  1,00,000 1,50,000  1,50,000 |
   4,00,000  20,000 60,000  40,000 |
|
14,00,000 |
5,20,000 |
|
|
II. Assets: 1. Non-Current Assets: a) Fixed Assets: Freehold Property (at cost) Plant and Machinery (at cost less depreciation) b) Investments: 40,000 shares in S Ltd. (at cost) 2. Current Assets: Stock-in-trade Sundry Debtors Bank Balance   |
   2,00,000 2,50,000  4,00,000  1,50,000 2,00,000 2,00,000 |
   – 1,20,000  –  2,00,000 1,00,000 1,00,000 |
|
14,00,000 |
5,20,000 |
3. (2018) The following are the Ledger balances of H Ltd. And its subsidiary company S Ltd. As on 31st March, 2018:
|
Credit Balances |
H Ltd. |
S Ltd. |
Debit Balances |
H Ltd. |
S Ltd. |
|
Share Capital: (Shares of Rs. 10 each) General Reserve Profit and Loss A/c Creditors |
6,00,000 1,50,000 70,000 90,000 |
2,00,000 70,000 70,000 40,000 |
Machinery Furniture Investment: 70% Shares of S Ltd. (cost) Stock Debtors Cash at Bank Preliminary Expenses |
3,00,000 70,000 2,60,000 1,75,000 55,000 50,000 – |
1,00,000 45,000 – 1,89,000 30,000 10,000 6,000 |
|
|
9,10,000 |
3,80,000 |
|
9,10,000 |
3,80,000 |
H Ltd. Acquired the shares of S Ltd. On 30th June, 2017. On 1st April, 2017 S Ltd. ‘s General Reserve and Profit & Loss Account balance stood at Rs. 60,000 and Rs. 20,000 respectively. No part of preliminary expenses was written-off during the year ended 31st March, 2018. Prepare a Consolidated Balance Sheet of H Ltd. And its subsidiary company S Ltd. As on 31st March, 2018.      14
4. (2018 old course) H Ltd. Acquired 4000 shares of S Ltd. As on 1st April, 2017. Their ledger balances as on 31st March, 2018 stood as follows:
Ledger balances
As on 31st March, 2018
|
Credit Balances |
H Ltd. (Rs. ) |
S Ltd. (Rs. ) |
Debit Balances |
H Ltd. |
S Ltd. |
|
Share Capital: (10000 Equity Shares of Rs. 10 each fully paid 5000 Equity shares of Rs. 10 each fully paid Profit and Loss A/c Creditors |
1,00,000 – 40,000 40,000 |
– 50,000 10,000 20,000 |
Fixed Assets Investment: 4000 Equity Shares of S Ltd. At Rs. 12.50 each. Current Assets |
1,00,000 50,000 30,000 |
60,000 – 20,000 |
|
|
1,80,000 |
80,000 |
|
1,80,000 |
80,000 |
On 1st April, 2017, the Profit and Loss A/c on S Ltd. Showed a loss of Rs. 15,000 which was written off out of profit earned in 2017-18. Prepare a Consolidated Balance Sheet as on 31st March, 2018. Show your working notes clearly.
5. (2017) The following are the Ledger balances of H. Ltd. and its subsidiary company S Ltd, as on 31st March, 2016:
|
Credit Balances |
H Ltd. Rs. |
S Ltd. Rs. |
Debit Balances |
H Ltd. Rs. |
S Ltd. Rs. |
|
Share Capital: Shares of Rs. 10 each fully paid General Reserve Profit & Loss A/c Creditors Bills Payable |
6,00,000 1,50,000 70,000 90,000 20,000 |
2,00,000 70,000 50,000 60,000 10,000 |
Machinery Furniture Investment: 70% of shares in S Ltd. at cost Stock Debtors Bills Receivable Cash at Bank Preliminary Expenses |
3,00,000 70,000 2,60,000 1,75,000 55,000 20,000 50,000 – |
1,00,000 45,000 – 1,89,000 30,000 10,000 10,000 6,000 |
|
|
9,30,000 |
3,90,000 |
|
9,30,000 |
3,90,000 |
H Ltd. acquired the shares of S Ltd. on 30th June, 2015. On 1st April, 2015, S Ltd. General Reserve and Profit & Loss a/c stood at Rs. 60,000 and Rs. 20,000 respectively. Bills receivable of S Ltd. include bills for Rs. 8,000 accepted by H. Ltd. and creditors of S Ltd. include Rs. 20,000 due to H. Ltd. No part of preliminary expenses was written off during the year ended on 31st March, 2016. You are required to prepare the Consolidated Balance Sheet as on 31st March, 2016 showing therein how your figures are arrived at.
8. (2017 old course) A Ltd. (holding company) acquired 4000 shares of B Ltd. (subsidiary company) as on 1st April, 2015. Their Balance Sheet as on 31st March, 2016 stood as follows:
Balance Sheets
As on 31st March, 2016
|
Liabilities |
A Ltd. |
B Ltd. |
Assets |
A Ltd. |
B Ltd. |
|
Share Capital: 1000 Equity Shares of Rs. 10 each fully paid 5000 Equity Shares of Rs. 10 each fully paid Profit & Loss A/c Creditors |
1,00,000 – 40,000 40,000 |
– 50,000 10,000 20,000 |
Fixed Assets Investment: 40000 Equity shares of B Ltd. at Rs. 12.50 each. Current Assets |
1,00,000 50,000 30,000
|
60,000 – 20,000 |
|
|
1,80,000 |
80,000 |
|
1,80,000 |
80,000 |
On 1st April, 2015, the Profit & Loss A/c of B Ltd. showed a loss of Rs. 15,000 which was written off out of profit earned in 2015 – 16. Prepare a Consolidated Balance Sheet as on 31st March, 2016      11
9. (2016) Following are the Balance Sheets of H Ltd. and its subsidiary company S Ltd. as on 31st March, 2014:
|
Liabilities |
H Ltd. |
S Ltd. |
Assets |
H Ltd. |
S Ltd. |
|
Share Capital: Shares of Rs. 10 each fully paid-up General Reserve Profit & Loss A/c Creditors |
6,00,000 1,50,000 70,000 1,30,000 |
2,00,000 70,000 50,000 1,00,000 |
Machinery Furniture Investment: 70% Shares in S Ltd. at cost Stock Debtors Cash at Bank Preliminary Expenses |
3,00,000 70,000 2,60,000 1,75,000 95,000 50,000 – |
1,00,000 45,000 – 1,89,000 70,000 10,000 6,000 |
|
|
9,50,000 |
4,20,000 |
|
9,50,000 |
4,20,000 |
H Ltd. acquired the shares of S Ltd. as on 30th June, 2013. On 1st April, 2013, the balance of General Reserve and Profit & Loss A/c of S. Ltd. stood at Rs. 60,000 and Rs. 20,000 respectively. No part of preliminary expenses was written off during the year ended on 31st March, 2014.
Prepare the Consolidated Balance Sheet of H. Ltd. and its subsidiary company S Ltd. as at 31st March, 2014.   14
10. (2016 old course) From the following Balance Sheets of H. Ltd. and its subsidiary company S Ltd. drawn up on 31st March, 2016, prepare a Consolidated Balance Sheet as on that date. On the date of acquisition of the shares, the General reserve of S Ltd. amounted to Rs. 20,000 and the Surplus A/c balance amounted to Rs. 40,000 (Cr.):
|
Liabilities |
H Ltd. |
S Ltd. |
Assets |
H Ltd. |
S Ltd. |
|
Share Capita: Shares of Rs. 10 each fully paid General Reserve Surplus A/c Sundry Creditors |
10,00,000 1,00,000 1,50,000 1,50,000 |
4,00,000 20,000 60,000 40,000 |
Freehold Property (at cost) Plant & Machinery (at cost less depreciation) Investment: 40000 shares in S Ltd. at cost. Stock Sundry Debtors Bank Balance |
2,00,000 2,50,000 4,00,000 1,50,000 2,00,000 2,00,000 |
– 1,20,000 – 2,00,000 1,00,000 1,00,000 |
|
|
14,00,000 |
5,20,000 |
|
14,00,000 |
5,20,000 |
11. (2015) On 31st March, 2015 the ledger balances of H Ltd. and its subsidiary S. Ltd. stood as follows:
|
Cr. Balances |
H Ltd. Rs. |
S Ltd. Rs. |
Dr. Balances |
H Ltd. Rs. |
S Ltd. Rs. |
|
Equity Shares Capital General Reserves Profit & Loss A/c Creditors |
8,00,000 1,50,000 90,000 1,20,000 |
2,00,000 70,000 55,000 80,000 |
Fixed Assets 75% Equity Shares in S Ltd. (at cost) Stock Other Current Assets |
5,50,000 2,80,000 1,05,000 2,25,000 |
1,00,000 ——— 1,77,000 1,28,000 |
|
|
11,60,000 |
4,05,000 |
|
11,60,000 |
4,05,000 |
Draw the Consolidated Balance Sheet as on 31st March, 2015 after taking into consideration the following information also:
a) H Ltd. acquired the shares on 31st July, 2014.
b) S Ltd. earned a profit of Rs. 45,000 for the year ended 31st March, 2015.
c) In January 2015, S Ltd. sold to H Ltd. goods costing Rs. 15,000 for Rs. 20,000. On 31st March, 2015, half of these goods were lying unsold in the godown of H Ltd.
12. (2015 old course) A Ltd. (holding company) acquired 4000 shares of B Ltd. (subsidiary company) as on 1st January, 2013. Their Balance Sheet as on 31st December, 2013 stood as follows:
|
Liabilities |
A Ltd. Rs. |
B Ltd. Rs. |
Assets |
A Ltd. Rs. |
B Ltd. Rs. |
|
Shares Capital 10000 E/shares of Rs. 10 each, fully paid 5000 E/Shares of Rs. 10 each fully paid Profit & Loss A/c Creditors |
1,00,000 – 40,000 40,000 |
– 50,000 10,000 20,000 |
Fixed Assets Investment: 4000 Equity Shares of B Ltd. at Rs. 12.50 Current Assets |
1,00,000 50,000 30,000 |
60,000 – 20,000 |
|
|
1,80,000 |
80,000 |
|
1,80,000 |
80,000 |
On 1st January, 2013, the Profit & Loss A/c of B Ltd. showed a loss of Rs. 15,000 which was written off out profits earned in 2013. Prepare a Consolidated Balance Sheet as on 31st December, 2013.
13. (2014 ) The following are the Balance Sheets of H. Ltd. and its subsidiary company S. Ltd. as on 31st March, 2013:
|
Liabilities |
H Ltd. |
S Ltd. |
Assets |
H. Ltd |
S. Ltd. |
|
Share Capital: Share of Rs.10Â each fully paid |
6,00,000 |
2,00,000 |
Machinery |
3,00,000 |
1,00,000 |
|
General Reserve |
1,50,000 |
  70,000 |
Furniture |
70,000 |
45,000 |
|
Profit & Loss a/c |
  70,000 |
  50,000 |
Investment: 70% shares in S Ltd. at cost |
2,60,000 |
__ |
|
Creditors |
  90,000 |
  60,000 |
Stock |
1,75,000 |
1,89,000 |
|
Bills payable |
  20,000 |
  10,000 |
Debtors |
55,000 |
30,000 |
|
|
|
|
Bills Receivable |
20,000 |
10,000 |
|
|
|
|
Cash at Bank |
50,000 |
10,000 |
|
|
|
|
Preliminary Expenses |
__ |
6,000 |
|
|
9,30,000 |
3,90,000 |
|
9,30,000 |
3,90,000 |
H Ltd. acquired the shares of S Ltd. on 30th June, 2012. On 1st April, 2012, S Ltd. ’s General Reserve and Profit & Loss A/c balance stood at Rs. 60,000 and Rs. 20,000 respectively. Bills Receivable of S Ltd. include bills for Rs. 8,000 accepted by H Ltd. and creditors of S Ltd. include Rs. 20,000 due to H Ltd. No part of preliminary expenses was written off during the year ended 31st March, 2013.
14. (2013) (c) A Ltd. Acquired 1000 shares of Rs. 10 each in B Ltd. At a cost of Rs. 16,000 and 500 shares of Rs. 10 each in C Ltd. At a cost of Rs. 4,000 on 1st January 2012 out of a total issue of share capital of 1500 and 800 shares respectively. Neither of the subsidiary company had issued any Preference Shares. At the date of acquisition, the accounts of B Ltd. Showed a General Reserve of Rs. 12,000 and credit balance of Rs. 4,500 in the Profit & Loss Account and the accounts of C Ltd. Showed a debit Balance of Rs. 6,400 in the Profit and loss Account. Show how these facts would be set out in the Consolidated Balance Sheet of A Ltd. and its Subsidiary companies.
15. (2012) Balance Sheet of A Ltd. And its subsidiary B Ltd. On 31st March, 2010 were as under:
|
Liabilities |
A Ltd. |
B Ltd |
Assets |
A Ltd. |
B Ltd. |
|
Share Capital: Equity Share of Rs. 10 each Fully Paid up General Reserve on 1.4.2009 Profit and Loss on 1.4.2009 Profit for the year ended 31.3.2010 Bills payable Creditors Bank Overdraft |
20,00,000 3,00,000 4,00,000 5,00,000 1,50,000 3,00,000 2,00,000 |
5,00,000 1,00,000 2,00,000 2,50,000 ——— 3,00,000 ——– |
Land and Building Plant and Machinery Fixture and Furniture 30000 Shares in B Ltd. at Cost Stock Debtors Cash in Hand Bills Receivable |
6,00,000 20,00,000 90,000 6,50,000 4,00,000 1,00,000 1,00,000 ——– |
——– ——– 1,00,000 ——– 7,50,000 2,80,000 20,000 2,00,000 |
|
|
38,50,000 |
13,50,000 |
|
38,50,000 |
13,50,000 |
30000 Shares in B Ltd. Were acquired by A Ltd. On 1st October, 2009. Bills Receivable held by B Ltd is a sum of 60,000 owing by A ltd in respect of goods supplied by B Ltd. Contingent Liability for bill discounted by B Ltd. is Rs. 25,000. You are required to prepare a Consolidated Balance Sheet of a Ltd. With its subsidiary B Ltd. As at 31st March, 2010.
16. (2010) From the Balance Sheet and information given below, prepare Consolidated Balance Sheet of H Ltd. and its subsidiary S Ltd.:
Balance Sheet as on 31st march, 2009
|
Liabilities |
H Ltd.(Rs) |
S Ltd (Rs) |
Assets |
H Ltd. (Rs) |
S Ltd. (Rs) |
|
Share Capital: Share of Rs 10 each fully paid |
5,00,000 |
1,00,000 |
Fixed Assets |
4,00,000 |
60,000 |
|
Profit & Loss A/c |
2,00,000 |
60,000 |
Stock |
3,00,000 |
1,20,000 |
|
Reserves |
60,000 |
30,000 |
Debtors |
75,000 |
85,000 |
|
Bills Payable |
|
15,000 |
Bill Receivable |
20,000 |
|
|
Creditors |
1,10,000 |
60,000 |
7500 shares in S Ltd. at cost |
75,000 |
|
|
|
8,70,000 |
2,65,000 |
|
8,70,000 |
2,65,000 |
Additional Information:
a) The bills accepted by S Ltd. are all in favour of H Ltd.
b) The stock of H Ltd. includes Rs 25,000 bought from S Ltd. at a profit to latter of 20% on sales.
c) All the profit of S Ltd. has been earned since the shares were acquired by H Ltd. but there was already the reserve of Rs 30,000 at that date
17. (2011) H Ltd. acquired 80000 shares of Rs 10 each in S Ltd. on 1st October, 2006. The summarized Balance sheets of H Ltd. and S Ltd. on 31st March, 2007 were as follows:
Balance Sheet
|
Liabilities |
H Ltd. Rs |
S Ltd. Rs |
Assets |
H Ltd. Rs |
S Ltd. Rs |
|
Share Capital of Rs 10 each |
20,00,000 |
10,00,000 |
Goodwill |
1,00,000 |
|
|
Reserves |
1,00,000 |
1,50,000 |
Machinery |
5,00,000 |
4,50,000 |
|
Profit & Loss A/c |
50,000 |
45,000 |
Furniture |
20,000 |
40,000 |
|
9% Debentures |
|
2,00,000 |
Shares in S Ltd. |
8,80,000 |
|
|
Creditors |
4,00,000 |
2,00,000 |
9% Debentures in S Ltd. |
80,000 |
|
|
Bills Payable |
20,000 |
10,000 |
Stock |
5,20,000 |
6,50,000 |
|
|
|
|
Debtors |
1,80,000 |
2,70,000 |
|
|
|
|
Bills Receivable |
10,000 |
15,000 |
|
|
|
|
Cash |
2,80,000 |
1,80,000 |
|
|
25,70,000 |
16,05,000 |
|
25,70,000 |
16,05,000 |
Bills Receivable of S Ltd. includes bills for Rs 8,000 accepted by H Ltd. and creditors of S Ltd. include Rs 20,000 due to H Ltd. An amount of Rs 30,000 was transferred by S Ltd. from the current year’s profits to reserve. You are required to prepare the Consolidated Balance Sheet as on 31st March, 2007 showing therein how your figures are made up.
18. (2004) The following are the balance sheet of X Ltd. & Y Ltd as at 31st December 2002
Liabilities                  X Ltd            Y Ltd       Assets                     X Ltd       Y Ltd
Equity shares of
 Rs 10 each                4,00,000        1,00,000     Equipment investment      250000      95,000
Profit & Loss A/C            50,000          20,000     9000 shares in Y Ltd.       1,40,000
Other Liabilities            7,50,000        4,80,000     Assets                                        8,10,000    5,05,000
                          12,00,000       12,00,000                              12,00,000   12,00,000
Shares were the acquired by X Ltd. On Jan 1, 2002. On the same day Profit & Loss A/C of Y Ltd. Showed a credit balance of Rs. 8,000 and equipments of Y ltd. was revalued by X Ltd. At 20% above its book value Rs. 1,00,000 (but no such adjustment was given effect of in the books of Y Ltd.) Prepare the Consolidate Balance Sheet as at 31st December 2002.
19. (2004 (Hons)) From the Balance Sheets as on 31 March, 2003
|
Liabilities |
H Ltd |
S Ltd |
Assets |
H Ltd |
S Ltd |
|
|
Share Capital: Share of Rs. 10 each Creditors Bills Payable |
16,00,000 7,00,000 80,000 |
6,00,000 3,20,000 40,000 |
Land & Building Plant & Machinery Furniture Investment in S Ltd 48000 Shares of Rs. 10 each Stock Debtors Bank balance
|
8,00,000 4,00,000 1,00,000 4,80,000 3,00,000 2,00,000 1,00,000 |
4,00,000 2,00,000 40,000 – 1,60,000 1,20,000 40,000 |
|
|
23,80,000 |
9,60,000 |
23,80,000 |
9,60,000 |
|||
20. (2006) Following are the Balance Sheet of H. Ltd and its subsidiary S. Ltd as at 31st March’ 2005:
|
Liabilities |
H Ltd |
S Ltd |
Assets |
H. Ltd |
S Ltd 1,00,000 45,000 – 1,89,000 30,000 10,000 6,000 |
|
Share Capital: Shares of Rs. 10 each fully paid General reserve Profit & Loss A/C Creditors
|
6,00,000 1,50,000 70,000 90,000
|
2,00,000 70,000 70,000 90,000
|
Machinery Furniture 70% shares in S. Ltd at cost Stock Debtors Cash at Bank Preliminary Exp. |
3,00,000 70,000 2,60,000 1,75,000 55,000 50,000 – |
|
|
|
9,10,000 |
3,80,000 |
9,10,000 |
3,80,000 |
H ltd acquired the share of S. Ltd on 30th June 2004 On, 1st April 2004 S Ltd’s General Reserve and Profit and Loss Account balance stood at Rs. 60,000 and Rs. 20,000 respectively. No part of Preliminary Exp was written off during the year ended on 31st March 2005. Prepare the Consolidated Balance Sheet of H. Ltd and its subsidiary company S. Ltd as at 31st March 2005.
21. (2007) S Ltd has the capital of Rs. 75,00,000 in shares of Rs. 100 each, out of which H. Ltd purchase 60% shares at Rs. 70,00,000. The profits of S Ltd. at the time of purchase of shares by H Ltd. were 40,00,000. S Ltd. decided to make bonus out of pre-acquisition profit of one shares of Rs. 100 each fully paid for every three shares of S Ltd. Calculate Cost of control of acquisition shares of S Ltd.
(i) before the issue of bonus shares;
(ii) after the issue of bonus shares;
23. (2008) On 31st March 2001, H Ltd paid Rs. 5,00,000 for 75% of the issued capital of S Ltd. Immediately after acquisition of controlling shares by H Ltd, it received from S Ltd @ 20 % which was correctly recorded by H. Ltd. In its books. The assets and liabilities of two Companies as at 1st April, 2001 were as follows:
|
Liabilities |
H Ltd |
S Ltd |
Assets |
H Ltd |
S Ltd |
|
Share Capital Reserve Creditors |
20,00,000 1,50,000 1,50,000 |
4,00,000 3,00,000 1,00,000 |
Sundry Assets Investments |
15,00,000 8,00,000 |
8,00,000 |
|
23,00,000 |
8,00,000 |
23,00,000 |
8,00,000 |
Prepare Consolidation Balance Sheet as at 1-4-2001.
PRACTICAL QUESTION BANK (FROM 2012 TO 2022)
ISSUE OF SHARES, RIGHT SHARES AND BONUS SHARES
REDEMPTION OF PREFERECE SHARES
ISSUE AND REDEMPTION OF DEBENTURES
AMALGAMATION AND EXTERNAL RECONSTRUCTION
Important Theory Questions for 2023 BCOM Exams available here.