H Ltd. acquires 70% of the equity shares of S Ltd. on 1-1-2022. On that date, the paid up capital of S Ltd. was 5,00,000 equity shares of ₹ 10 each; the accumulated reserve balance was ₹ 20,00,000. Assets of S Ltd. were
CS Executive · Corporate and Management Accounting · PYQS · June 2023
H Ltd. acquires 70% of the equity shares of S Ltd. on 1-1-2022. On that date, the paid up capital of S Ltd. was 5,00,000 equity shares of ₹ 10 each; the accumulated reserve balance was ₹ 20,00,000. Assets of S Ltd. were revalued on 1-1-2022 and a revaluation profit of ₹ 14,00,000 was calculated. H Ltd. paid ₹ 40,00,000 to purchase the said interest. Which of the following is correct in relation to the cost of control of the group consolidated financial statement?
Answer & Explanation:
Correct Answer: Option (C)
Official answer key: (C).
Topics: Corporate Accounting
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