S Ltd. has a capital of ₹4,00,000 in shares of ₹100 each, out of which H Ltd. purchased three-fourths of the shares at ₹4,80,000. The profit of S Ltd. at the time of purchase of shares by H Ltd. was ₹1,20,000. If S Ltd.
CS Executive · Corporate and Management Accounting · PYQS · December 2022
S Ltd. has a capital of ₹4,00,000 in shares of ₹100 each, out of which H Ltd. purchased three-fourths of the shares at ₹4,80,000. The profit of S Ltd. at the time of purchase of shares by H Ltd. was ₹1,20,000. If S Ltd. decided to make a bonus issue out of pre-acquisition profits, of one share for every five shares held, the cost of control after the issue of bonus shares would be :
Answer & Explanation:
Correct Answer: Option (D)
Official answer key: (D).
Topics: Consolidated Financial Statements
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