Subject: Corporate Accounting Unit 7:Holding Company

1 Ratio

The Portion of Holding Company & Minority in Subsidiary Company

2. Statement of Capital Profit/Loss (Before the date of Acquisition)

	Particulars	Amount
Add	General Reserve of Subsidiary Company	XXXX
Add	Profit of Subsidiary Company	XXXX
Less	Loss of Subsidiary Company	XXXX
Add	Undervaluation of Subsidiary Company Assets	XXXX
Less	Overvaluation of Subsidiary Company Assets	XXXX

3. Statement of Revenue Profit/Loss (After the date of Acquisition)

	Particulars	Amount
Add	General Reserve of Subsidiary Company	XXXX
Add	Profit of Subsidiary Company	XXXX
Less	Loss of Subsidiary Company	XXXX

4. Statement of Minority Interest 

	Particulars	Amount
Add	Face Value of Shares held by Minority	XXXX
Add	Capital Profit of Minority	XXXX
Less	Capital Loss of Minority	XXXX
Add	Revenue Profit of Minority	XXXX
Less	Revenue Loss of Minority	XXXX

5. Statement of Cost of Control.

(Any profit made on account of acquisition should be credited to Capital Reserve Account while any loss suffered on acquisition should be debited to Goodwill Account)

	Particulars	Amount
	Investment of Holding Company  (Cost of shares purchased by holding company)	XXXX
Less	Face Value of Shares held by Holding Company	XXXX
Less	Capital Profit of Holding Company	XXXX
Add	Capital Loss of Holding Company	XXXX
Add	Goodwill of Holding Company (As Per Balance Sheet)	XXXX
Add	Goodwill of Subsidiary Company (As Per Balance Sheet)	XXXX

6. Unrealised Profit 

Profit which has been made but not yet realized through a transaction, such as a stock which has risen in value but is still being held.

7. Stock 

	Particulars	Amount
Add	Stock of Holding Company	XXXX
Add	Stock of Subsidiary Company	XXXX
Less	Unrealised Profit of Holding Company	XXXX

8. Statement of Profit and Loss Account 

	Particulars	Amount
Add	Profit of Holding Company	XXXX
Add	Revenue Profit of Holding Company	XXXX
Less	Revenue Loss of Holding Company	XXXX
Less	Unrealised Profit of Holding Company	XXXX

Consolidated Balance Sheet of _____ and its Subsidiary Company____

As on 31^st March ______

Liabilities	₹	₹	Assets	₹	₹
Share Capital (Holding Company)		XXX	Stock (as per working note 7)		XXX
General Reserve (Holding Company)		XXX	Goodwill (as per working note 5)		XXX
Capital Reserve (as per working note 5)		XXX	Debtors
Profit and Loss Account (as per working note 8)		XXX	Holding Company	XXX
Minority Interest (as per working note 4)		XXX	Add Subsidiary Company	XXX
Creditors			Less Inter Co Owings	XXX	XXX
Holding Company	XXX		Fixed Assets
Add Subsidiary Company	XXX		Assets of Holding Company	XXX
Less Inter Co Owings	XXX	XXX	Add Assets of Subsidiary Company	XXX
Bills Payable			Add Undervaluation of Assets	XXX
Holding Company	XXX		Less Overvaluation of Assets	XXX	XXX
Add Subsidiary Company	XXX		Bills Receivable
Less Inter Co Owings	XXX	XXX	Holding Company	XXX
			Add Subsidiary Company	XXX
			Less Inter Co Owings	XXX	XXX
			Cash in Hand OR at Bank
			Holding Company	XXX
			Add Subsidiary Company	XXX	XXX
Total Liabilities		XXX	Total Assets		XXX