H Ltd. acquires 75% of the equity shares of S Ltd. on 1-4-2023. On that date, the paid-up capital of S Ltd. was 20,000 equity shares of ₹ 100 each; the accumulated reserve balance was ₹ 10,00,000. H Ltd. paid ₹ 26,00,000
CS Executive · Corporate and Management Accounting · PYQS · June 2024
H Ltd. acquires 75% of the equity shares of S Ltd. on 1-4-2023. On that date, the paid-up capital of S Ltd. was 20,000 equity shares of ₹ 100 each; the accumulated reserve balance was ₹ 10,00,000. H Ltd. paid ₹ 26,00,000 to acquire 75% interest in the S Ltd. Assets of S Ltd. were revalued on 1-4-2023 and a revaluation loss of ₹ 1,00,000 was ascertained. The cost of control is:
Answer & Explanation:
Correct Answer: Option (B)
Official answer key: (B).
Topics: Corporate Accounting
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