Consolidation Full Question Solved | Jan 2026 | Malayalam Explanation | CA Aslamsha

Question 5 Prepare a consolidated balance sheet of MN Ltd. and its subsidiary RP Ltd. as on 31st March, 2025: Balance Sheets as on 31st March, 2025 Note No. MN Ltd. (` in Lakh) RP Ltd. (` in Lakh) I. Equity and Liabilities (1) Shareholders’ Funds (a) Share Capital 1 7,000 4,000 (b) Reserve and Surplus 2 4,000 3,500 (2) Non-current Liabilities (a) Long Term Borrowings 1,800 1,400 (3) Current Liabilities (a) Tarade Payable 2,280 1,600 Total 15,080 10,500 II. Assets (1) Non-current Assets (a) Property, Plant and Equipment 3 6,800 5,500 (b) Non-current Investments 4 3,280 - (2) Current Assets (a) Inventory 2,200 1,500 (b) Trade Receivables 5 1,800 1,200 (c) Cash and Bank 1,000 2,300 15,080 10,500 INTERMEDIATE EXAMINATION: JANUARY 2026 SUGGESTED ANSWERS 32 Note to Accounts: MN Ltd. (` in Lakh) RP Ltd. (` in Lakh) 1. Share Capital Issued and Subscribed: Equity shares of ` 10 each, fully paid up 7,000 4,000 2. Reserve and Surplus General Reserve 2,600 2,000 Profit and Loss Account 1,400 1,500 Total 4,000 3,500 3. Property, Plant and Equipment Land and Building 4,000 3,500 Plant and Machinery 2,800 2,000 Total 6,800 5,500 4. Non-current Investment Shares in RP Ltd. 3,000 - Debentures in RP Ltd. 280 - Total 3280 - 5. Trade Receivable Debtors 1,200 900 Bills Receivable 600 300 Total 1,800 1,200 Additional Information: 1. MN Ltd. acquired 75% shares in RP Ltd. on 1st April, 2024. On the date of acquisition: General Reserve of RP Ltd. - ` 1,600 lakh Profit & Loss Account of RP Ltd. ` 1,200 lakh