The mutual obligations to be eliminated from the consolidated balance sheet are ___________.
$1.$ Cash in transit or goods in transit
$2.$ Contingent liabilities
$3.$ Loans payable and receivable
$4.$ Owing for services rendered

1, 3

and

4

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2

and

4

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1

and

3

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All the four

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Solution

The correct option is C All the four
A consolidated balance sheet is a document which consists of all the assets and liabilities of the parent company as well as its subsidiaries company. It also states the following items to be eliminated while preparing it:
Cash in transit or goods in transit.
Contingent liabilities.
Loans payable and receivable.
Owing for services rendered.

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Similar questions

1.

Providing only for the holding company's share of unrealised profit is more popular.

2.

The holding company's share of the unrealised profit should be reduced from the stock on the asset's side of the consolidated Balance Sheet

3.

The holding company's share of unrealised profit should be reduced from the profit and loss account on the liabilities side of the consolidated Balance Sheet.

4.

The approach of making a provision for the entire profit included in the stock is preferred by the American Institute of Certified Public Accountants (AICPA)
Of these.

Q. Assertion :Contingent Liabilities is included in the total of the liability side of the balance sheet of a company. Reason: Contingent liabilities are those which may or may not arise in future.

Q. Prove that the Accounting Equation is satisfied in all the following transactions of Rajaram. Also prepare a Balance Sheet:−
1. Started business with Cash ₹ 1,20,000.
2. Purchased a typewriter for Cash for ₹ 8,000 for office use.
3. Purchased goods for ₹ 50,000 for cash.
4. Purchased goods for ₹ 40,000 on credit.
5. Goods costing ₹ 60,000 sold for ₹ 80,000 on credit.
6. Paid for Rent ₹ 1,500 and for salaries ₹ 2,000.
7. Received ₹ 800 for Commission.
8. Withdrew for private use ₹ 5,000 in cash.

The following are the Balance Sheets of Mohan Ltd., at the end of 2004 and 2005.

					Rs’000
Liabilities	2004	2005	Assets	2004	2005
Equity Share Capital	400	600	Land & buildings	270	170
Reserves & Surplus	312	354	Plant & Machinery	310	786
Debentures	50	100	Furniture & Fixtures	9	18
Long-term Loans	150	255	Other Fixed Assets	20	30
Accounts Payable	255	117	Loans and Advances	46	59
Other Current Liabilities	7	10	Cash and Bank	118	10
			Account Receivable	209	190
			Inventory	160	130
			Prepaid Expenses	3	3
			Other current Assets	29	40
	1,174	1,436		1,174	1,436

Prepare a Comparative Balance Sheet and study the financial position of the company.

Show the accounting equation on the basis of the following transactions

1. Mr. Ketan Shah started business with cash Rs 50,000.
2. Purchased goods from Ramesh Rs 30,000.
3. Withdrew goods for personal use Rs 2,000.
4. Purchased household goods for Rs 15,000 giving Rs 5,000 in Cash and balance through loan.
5. Paid Cash Rs 300 for interest.

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The mutual obligations to be eliminated from the consolidated balance sheet are ___________.1. Cash in transit or goods in transit2. Contingent liabilities3. Loans payable and receivable4. Owing for services rendered

The mutual obligations to be eliminated from the consolidated balance sheet are ___________.
$1.$ Cash in transit or goods in transit
$2.$ Contingent liabilities
$3.$ Loans payable and receivable
$4.$ Owing for services rendered