Foreign Associate company of Indian Shanti company Is located at Australia it's 30% shares are acquired by Shanti company on 1/9/2015 On this day there were a credit balance of AUS$ 2600 and 2800 For profit and loss account and general reserve respectively balance sheets of both the company as at 31-3-2016 as follow Equity Share Capital (each or 100 and AUS $ 10) General Reserve Capital Reserve Profit & Loss NC Non-Current Liabilities Current Liabilities: Creditors Bills Payable Bank Overdraft Total 4,00.000 80.000 2.40,000 4.00,000 4.000 Eur 500 W 7.500 8,000 NUL 2,40.000 80,000 80,000 35,20,000 4,900 2.000 2.000 Assets: 48.000 8,00,000 Non-Current Assets: Land-Building Plant-Machinery Furniture Investments in Associate (600 shares) Other Investments Current Assets: Cash Balance 5,00,000 3,00,000 5,20,000 4,80,000 12,000 8,000 4,000 12.000 Stock 5,60,000 2,40,000 1,20,000 35,20,000 4,000 4,000 Debtors Total 4,000 48,000 Information: Foreign Associate has paid dividend @ 10% for previous year. It is credited by Shanti Ltd. in its P & L Alc. At the time of dividend Payment exchange rate was AUS $1 = IND70. 1 AUS $ = IND Exchange Rates: Opening of the year At the time of share purchase 1 AUS $ = IND Closing of the year Average of the year 1 AUS $ = IND 1 AUS $ = IND 69 70 71 70.5