Forums
Back
Consolidation Of Financial Statements
Accountancy
Why they have deducted amount of dividend in calculation of Minority Interest.
Answers (3)
Since the dividend has already been paid, that much amount will be subtracted from current years profits. Profits for Dec X1 is 20,000 Out of this, 15,000 is paid out as dividend. What is left in P/L A/c is (20k-15k) 5000 So interest is calculated as - =20% of (Capital+ balance in P/L A/c as on Jan X1 + Profits for Jan X1 - Dec X1 after dividend pay out) =20% (100000+60000+5000)
Your Reply