The following information is of A Ltd. and its subsidiary B Ltd. as on 31st December, 2023: Particulars A Ltd. (₹) B Ltd. (₹) Equity and Liabilities Equity share capital @ 10 each 20,00,000 10,00,000 General Reserve 5,00

CS Executive · Corporate and Management Accounting · PYQS · December 2024
The following information is of A Ltd. and its subsidiary B Ltd. as on 31st December, 2023: Particulars A Ltd. (₹) B Ltd. (₹) Equity and Liabilities Equity share capital @ 10 each 20,00,000 10,00,000 General Reserve 5,00,000 2,00,000 Profit and Loss 2,00,000 1,00,000 Creditors 3,00,000 2,00,000 Assets Sundry Assets 22,00,000 15,00,000 Investment 60,000 shares of B Ltd. 8,00,000 A Ltd. acquired its shares in B Ltd. On 1st January, 2023 when general reserve of B Ltd. stood at ₹ 40,000 and its profit and Loss Account (Credit) was ₹ 50,000. Calculate the ratio of shares acquired by A Ltd. and shares held as Minority Interest.
(A) 3:2
(B) 2:1
(C) 4:1
(D) None of the above

Answer & Explanation:

Correct Answer: Option (A)

Official answer key: (A).

Topics: Consolidated Financial Statements

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