222

$show=home

Welcome to Accounting Education

The Accounting University with 3400+ Accounting contents as study material which can watch, read and learn anyone, anywhere.

Start your studies

$show=home

Journal Entries $type=three$count=6$author=hide$comment=hide$label=hide$date=hide$show=home$s=0

Balance Sheet $type=three$count=6$author=hide$comment=hide$label=hide$date=hide$show=home$s=0

How to Make Consolidated Income Statement - Part 2

Yesterday, we had explained basic steps of making consolidated income statement. Today, we will clear these basic steps through an example.

The trial balance of H Ltd and S Ltd are given below as on 31-3-2010

H Ltd.  S Ltd.
Dr. Cr. Dr. Cr.
Equity share capital (Rs. 10) 10,00,000 4,00,000
6% Pref. share capital (Rs. 10) - 1,00,000
Fixed Assets less depreciation up to 31-3-2009 5,50,000 3,50,000
Sales including 200000 sales by H Ltd to S ltd 12,00,000 10,00,000
Cost of goods sold 960,000 8,00,000
stock 31-3-2010 120,000 90,000
debtors and creditors 2,00,000 1,30,000 1,60,000 60,000
general expenses 32000 shares in S ltd. 4,00,000
interim dividend paid
preference 3000
equity 20,000
Dividend received 16000
profit and loss account ( 31-3-2009 76,000 48,000
Bank 62,000 65,000
24,22,000 24,22,000 16,08,000 16,08,000

1) Shares were purchased on 1-4-2008

2) S Ltd has paid and provided Rs. 20,000 dividend  for 2007-2008 and
46000 for 2008-2009. The net profit for 2008-2009 was 74,000

3)H ltd. proposed 80,000 fir 2009-2010 and S ltd provided for final dividend
of 3000 as preference dividend and 20,000 equity dividend

4) Goods sold by H ltd to S ltd were at 20% profit on sales price. Closing
stock of S Ltd includes 20,000 such stocks.

5) Depreciation is charged @ 10% p.a. on reducing balance method. There is no
addition in 2009. Fixed assets of S Ltd were valued at 10,000 in excess, but not adjustment has
been made in books. Provision for additional depreciation is to be made only to the extent to
holdings of H ltd.

Prepare consolidated trading and profit and loss account  and p/l  appropriation account for the year
 ended 31st march 2010.

Working notes :

1. Calculation of extra depreciation on fixed assets


Amount written up on 1-4-2008  ================  10,000
Less depreciation 10% depreciation ( 10,000 X 10/100) =  1000
-------------------------------------------------------------------
Book value on 1-4-2009 ==================== 9000
10% Depreciation 2009-2010 ================= 900
Holding company's share of depreciation 900 X 4/5 = 720


2. Calculation of capital reserve


Profit and loss account balance of S ltd on 31-3-2009 = 48000
Less : Profit of S ltd for 2008-2009 = 74000
Less : Dividend for 2008-2009      = 46000
--------------------------------------------
 ====================== 28000  ========  - 28000
----------------------------------------------------------------
Profit and loss balance on 1-4-2008 ===========     20000
============================================
Share of holding company 20,000 X 4/5 ========= 16000

3. Calculation of Share of Minority interest in Net Profit of S ltd

Sales --------------------10,00,000
Less cost of goods sold    8,00,000
------------------------------------------
Gross profit -------------- 2,00,000
Less general exp. ------- 1,20,000
Less depreciation ------ 35,000
=============================
current Net profit ------------- 45,000
Old profit  ---------- ---------- 48,000
=============================
Total profit ------------------ 93,000
Less interim dividend ------- 23000 ( Pref. + equity)
Less proposed dividend ----23000 ( Pref. + equity)
========================================
Balance of net profit ------ 47000
==========================================
Share of Minority interest in Net Profit of S ltd  47000 X 1/5
= 9400

Consolidated Trading and profit and loss account and P/L Appropriation account

 Total total          
To cost of goods sold
HLtd  960000
 + S Ltd 8,00,000
--------------------
 ============1760,000
Less internal transfer 2,00,000
----------------------------
============1560,000








15,60,000
By Sales
HLtd  12,00,000
 + S Ltd 10,00,000
--------------------------------
 ================22,00,000
Less internal transfer          
2,00,000
------------------------------------
================20,00,000







20,00,000
To Gross profit c/d 4,40,000
20,00,000 20,00,000
To General Expenses By Gross Profit b/d 4,40,000
H Ltd  130,000 By Dividend Received
S Ltd 1,20,000 H Ltd 16,00,000
250,000 2,50,000 Less received from S ltd - 16,00,000  Nil
By Dividend Proposed
H Ltd 16,000
Less proposed  from S ltd - 16,000  Nil
To Depreciation
H Ltd 55000
S ltd 35000
90000  90,000
To Net Profit C/d 1,00,000
4,40,000 4,40,000
To interim dividend By Balance B/d 1,24,000
Pref. By Net Profit B/d 1,00,000
H Ltd Nil
S ltd 3000 3,000
Equity
H Ltd Nil
S Ltd 20,000
total 20,000
Less internal transfer -16,000
Net 4,000 4,000
To Proposed Divided
Pref.
H ltd Nil
S ltd 3,000 3,000
Equity
H ltd 80,000
S ltd 20,000
total 1,00,000
Less internal transfer -16,000
Net 84000 84,000
To balance C/d 1,30,000
2,40,000 2,40,000
To Share of Minority interest in Net Profit of Sltd  9400 By Balance B/d 1,30,000
To stock reserve
20,000 X 20/100 X 4/5
3200
To capital reserve 16,000
To extra depreciation on value written off
9000 X 10/100 X 4/5
720
To Balance C/d 1,00680
1,30,000 1,30,000


Comments

 


Name

access,2,account,86,accountant,95,Accounting,683,accounting definitions,99,accounting ebook,3,Accounting education,85,Accounting Education Ads Help,1,accounting procedure,2,accounting process outsourcing,2,Accounting Software,52,advance,3,advertising,6,africa,7,Amalgamation,6,amendments,16,Amortization,1,announcements,62,Annuity,2,assets,53,audit,47,auditing,41,Australia,2,B.Com.,22,balance sheet,87,bank,111,Bank reconciliation,12,banking,33,basic accounting,110,BBA,1,benefits,13,best,50,bill,12,black money,3,blog,12,bloggers,7,book keeping,4,bookkeeping,3,Branch Accounting - full tutorial,8,budget,35,Budget variance,13,business,65,businessman,9,CA,30,calculator,4,canada,3,capital,72,capital budgeting,27,career,21,cash,40,cash book,8,cash flow statement,11,Chiense,1,children,13,china,6,class,3,coaching,2,coins,2,college,6,commerce,10,commerce students,7,company,36,computer,9,computer accounting,1,conference,4,Contact vinod kumar,1,Control Your Spending,27,corporate accounting,69,cost,160,cost accounting,195,cost center,8,cost centre,1,CPA,2,credit,18,credit card,11,cs,10,currency,35,data,11,Debit and credit,17,debit cards,1,debt,62,debtor,21,degree,6,depletion,2,depreciation,38,Diwali Messages,12,documents,4,dollar,5,domain,3,Downloads,3,Dubai,1,e-accounting,17,earning,17,education,246,Education Loans,6,email,15,employee,4,EPF,2,ERP,7,euromoney,1,examination,7,excel,17,excise duty,6,expenses,65,facebook,7,factor of loan,1,fans,2,feature,32,fifo,5,FII,4,fiji,1,finacle,1,finance,823,Finance Journal Entries,6,Financial,134,financial accounting,147,Financial Statements,4,fire insurance,3,flickr,2,flow,4,forensic,4,forex,21,formula,8,france,1,fraud,6,free,2,fun,34,function,1,fund,48,GAAP,36,GDP,1,gdr,5,germany,1,gold,7,goodwill,4,goodwill accounting,3,google,34,google apps,3,google apps,1,google base,1,google buzz,1,google calendar,1,Google docs,38,google finance,3,google fusion tables,1,google talk,5,govt.,5,GST,33,guide,85,health,6,Hindi,2,Hindi Language,3,history,3,holding company,3,How to treat FBT in Tally 9,1,HRA,3,ICAI,11,ICAWI,3,ICICI Bank,1,IFRS,11,income,17,income statement,19,Income Tax,7,India,57,indian railway,1,Indonesia,1,inflation,4,inflation accounting,3,infographics,8,information,7,inspiration,176,insurance,14,insurance accounting,2,Intangible,3,interest,26,international,7,Internet,40,Introduction of Tally 9,1,inventory,41,investment,135,investment in Shares,6,invoice,3,IT,1,Japan,1,Job costing,4,journal entries,143,Journal Entries eBook Help,4,Kalculate,1,keyboard,3,kuwait,2,laptop,2,law,4,LBT,1,learning,36,lease,5,lecture,11,ledger,17,leducation,1,Leverage Analysis,7,liabilities,16,lifo,3,linkedin,1,loan,74,logical point,1,loss,5,loss of profit,1,M.Com.,5,m.phil,2,malaysia,3,management accounting,129,manual accounting,4,manufacturing account,1,market,11,marketing,3,mastercard,2,material,13,MBA,14,MCA,1,media,4,migration,2,mobile,9,money,61,ms word,3,ms. excel,14,multi currency in tally 9,1,Multicurrency Accounting,3,mutual fund,30,national security,1,new and sacrifice ratio,1,new york times,1,new zealand,1,news,1,NGO,5,nonprofit-accounting,6,North Georgia Mountains,1,Notification,1,NPV,17,NSE,1,odbc,2,office,10,oman,1,online application,2,online accounting,11,Online Accounting Course,5,otcei,1,pakistan,3,parents,3,Partnership,1,pay pal,3,pdf,4,Personal Finance,6,pie chart,1,pie chart of income,2,pnb,5,podcast,1,ppf,1,presentation,10,price,7,privacy policy,2,prof. vinod kumar,13,profit,24,profit and loss account,12,project management,11,provision,14,purchase,9,puzzles,2,quickbooks,2,Quote,22,quotes,42,quotes of svtuition,1,rating agency,2,ratio analysis,34,RBI,7,readers,13,real estate,13,rectification of errors,11,remote control,2,reports,10,reserves,8,responsibility accounting,4,retirement,2,revenue,3,Revenue reserves,2,review,7,risk,11,rupees,9,salary,5,sale,12,SAP,3,saudi arabia,1,saving,19,sbi,9,scholarship,2,school,1,SEBI,13,security,30,service tax,23,share,20,share trading,15,Shares,16,shri lanka,3,singapore,2,sms,6,social accounting,7,society,5,solution,219,South Africa,1,stock,24,stock exchange,22,structure,6,student,39,students,70,study,21,subsidiary company,2,svtuition,14,swiss bank,2,tally,100,tally 9,8,Tally 7.2,8,Tally 9,42,Tally.ERP 9,59,TallyPrime,1,tanzania,2,tax,94,Tax Accounting,30,TDS,15,teacher,62,teaching,112,technology,33,test,40,testimonial,15,testimonials,15,thailand,1,tips,60,trading,5,trading on equity,2,transaction,7,trend,12,trial balance,14,truthfulness,1,tuition,3,twitter,10,UAE,5,UGC - NET Commerce,13,UK,11,United Arab Emirates,1,university,9,usa,25,valuation,9,VAT,22,Video,36,Voucher and vouching,4,Wealth,8,wikipedia,25,working capital,29,youtube,14,
ltr
item
Accounting Education: How to Make Consolidated Income Statement - Part 2
How to Make Consolidated Income Statement - Part 2
Accounting Education
https://www.svtuition.org/2012/01/how-to-make-consolidated-income_23.html
https://www.svtuition.org/
https://www.svtuition.org/
https://www.svtuition.org/2012/01/how-to-make-consolidated-income_23.html
true
2410664366776677676
UTF-8
Loaded All Posts Not found any posts VIEW ALL Reply Cancel reply Delete By Home PAGES Contents View All RELATED CONTENTS FOR YOUR LEARNING Topic ARCHIVE SEARCH ALL POSTS Not found any post match with your request Back Home Sunday Monday Tuesday Wednesday Thursday Friday Saturday Sun Mon Tue Wed Thu Fri Sat January February March April May June July August September October November December Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec just now 1 minute ago $$1$$ minutes ago 1 hour ago $$1$$ hours ago Yesterday $$1$$ days ago $$1$$ weeks ago more than 5 weeks ago Followers Follow THIS PREMIUM CONTENT IS LOCKED STEP 1: Share to a social network STEP 2: Click the link on your social network Copy All Code Select All Code All codes were copied to your clipboard Can not copy the codes / texts, please press [CTRL]+[C] (or CMD+C with Mac) to copy