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A 25% holder carries an associate at Rs 1,00,000. The associate loses Rs 6,00,000. Carrying amount?

ANil (zero) balance
BRs 50,000 credit
CRs 1,50,000 debit
DRs 1,00,000 intact
Answer & Solution
Correct answer: A. Nil (zero) balance
The share of loss is Rs 1,50,000, which exceeds Rs 1,00,000, so recognition stops and the investment is nil.
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