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Consolidatn illustratn 5

Accountancy

Is the answer given in textbook of Illustration 5 of consolidated financial statements wrong? Because they have taken 500000*40% as dividend declared instead of 300000*40%. Pls check the answer I have attatched. Is this the right way to do or the solution in textbook itself is correct?

Ali S

CA Final

★ 8K+

05-Jul-21 08:59

470

Answers (1)

ICAI solution is correct. Total shares in S Ltd is 5000 shares of Rs. 100 each. In those 5000 shares, H ltd holds 3000 shares. Here, S ltd declared dividend. So, total dividend is 500000 x 40% = Rs. 2,00,000. Share of H Ltd Dividend is Rs. 1,20,000

Yoga Vishnu

CA Final

★ 11K+

08-Jul-21 10:22