Accounts of Holding Companies Question Bank [BCOM 2nd Sem CBCS Pattern 2023]


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 University 

– Gauhati University

– Assam University

accounts of holding companies question bank

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.
(Rs.)

B Ltd.
(Rs.)

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: 

1)    H Ltd. acquired the shares on 31st July, 2018.

2)    S Ltd. earned a profit of Rs. 45,000 for the year ended 31st March, 2019.

3)    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) 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.
(Rs. )

S Ltd.
(Rs. )

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.10  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

FINAL ACCOUNTS OF COMPANIES

INTERNAL RECONSTRUCTION

AMALGAMATION AND EXTERNAL RECONSTRUCTION

ACCOUNTS OF BANKING COMPANIES

CASH FLOW STATEMENT

ACCOUNTS OF HOLDING COMPANIES

Important Theory Questions for 2023 BCOM Exams available here.


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