alleryStart learning →Associate earns Rs 5,00,000, owes outsiders Rs 1,00,000 preference dividend. Investor holds 40%. Profit share?
ARs 2,00,000
BRs 1,60,000
CRs 1,00,000
DRs 2,40,000
Answer & Solution
Correct answer: B. Rs 1,60,000
Profit is first reduced by the 1,00,000 preference dividend to 4,00,000, and 40 per cent of that is 1,60,000.
Keep practising Ind AS 27, 28 and 111 Separate Financial Statements, Associates and Joint Ventures
Browse all Ind AS 27, 28 and 111 Separate Financial Statements, Associates and Joint Ventures questions for CA Final, or explore more Financialreporting topics.
Related questions
Equity accounting is usually applied where the investor holds what share of voting shares?If facts and circumstances change, an entity should:A joint operator recognises in a joint operation:A joint venturer accounts for its interest in a joint venture using:In a joint venture, the parties with joint control have rights to the:A joint arrangement is one in which two or more parties have:A parent that skips consolidation and prepares separate statements must disclose:In a qualifying reorganisation, cost of the new parent's investment is: