Beta Ltd. is a subsidiary of Alpha Ltd. The following is the Balance Sheet of Beta Limited as at 31 st March, 2019: Particulars Amount (in lakh) EQUITY AND LIABILITIES 1. Shareholders' Funds (a) Share Capital: Equity Sha

1) Calculation of Cost of Control (Rs. in lakh) Particulars Rs. in lakh Rs. in lakh Cost of Investment in shares of Beta Ltd. 460 Less: Paid up share capital held (24 lakh shares * ₹10) 240 Capital profit- pre-acquisition (80% of ₹ 180 lakh) 144 Profit on revaluation of Land and Building (capital profit) (80% of ₹ 60 lakh) 48 (432) Cost of control/ Goodwill 28 Working notes: Share Capital of Beta Ltd. = ₹ 300 lakh. Alpha Ltd. acquired 24 lakh shares, which is (24 lakh / (300 lakh / 10)) = 24/30 = 80% holding. Revaluation of Land and Building: Book value = ₹ 270 lakh. Revalued at 20% above book value of ₹ 300 lakh. This implies the revalued amount is ₹ 300 lakh * 1.20 = ₹ 360 lakh. The increase in value is ₹ 60 lakh (₹ 360 lakh - ₹ 300 lakh). The problem states 'revalued by Alpha Ltd., at 20% above book value of ₹ 300 lakh'. This is a bit confusing. Assuming the book value for revaluation purpose is ₹ 300 lakh, and 20% above it is ₹ 60 lakh. So, total revalued amount is ₹ 360 lakh. The increase is ₹ 60 lakh. This ₹ 60 lakh is pre-acquisition profit. 2) Computation of Minority Interest (Rs. in lakh) Particulars Rs. in lakh Paid up value of shares held (₹ 300 lakh * 20%) 60 Add: share of pre-acquisition profit (₹ 180 lakh * 20%) 36 Add: share of profit on Revaluation of Land and Building (₹ 60 lakh * 20%) 12 Add: share of post acquisition profit (₹ 250 lakh - ₹ 180 lakh - Additional Depreciation ₹ 6 lakh = ₹ 64 lakh * 20%) 12.8 Minority Interest 120.8 Working notes: Profit on Revaluation and Additional depreciation Profit on Revaluation of Land and Building = 20% of ₹ 300 lakh = ₹ 60 lakh Additional Depreciation Depreciation on Land and Building for 2018-19 = ₹ 300 lakh - ₹ 270 lakh = ₹ 30 lakh (This is the difference in book value, not depreciation for the year) Rate of Depreciation on land and Building = 30/300 = 10% Additional Depreciation = ₹ 60 lakh * 10% = ₹ 6 lakh (This is depreciation on the revalued amount for the period from acquisition to balance sheet date, assuming the revaluation happened at acquisition date and the difference in P&L is for the full year) Statement of Profit and Loss of Beta Ltd. showed a credit balance of ₹ 180 lakh on 1st April, 2018 (acquisition date). On 31st March, 2019, it is ₹ 250 lakh. So, profit for the year is ₹ 70 lakh (₹ 250 - ₹ 180). Since acquisition was on 1st Oct 2018, pre-acquisition profit is ₹ 180 lakh. Post-acquisition profit is (₹ 250 lakh - ₹ 180 lakh) = ₹ 70 lakh. From this, additional depreciation on revalued asset needs to be deducted. Additional depreciation = 10% of ₹ 60 lakh (revaluation profit) = ₹ 6 lakh. So, post-acquisition profit for minority interest calculation = ₹ 70 lakh - ₹ 6 lakh = ₹ 64 lakh.