Holding compay

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Deepak kaushik (Querist)
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18 November 2014 X Ltd. acquired 12000 equity shares out of 20000 shares of rs. 10 each of Y Ltd. at 180000rs. Y Ltd. paid dividend at 10% out of its pre-acquisition profit. Net value of subsidiary co. on the date of acquisition was 250000rs. The goodwill or capital reserve will be? plz give me its solution.....

Amol S Joglekar

Amol S Joglekar (Expert)
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18 November 2014 Net value of Subsidiary is Rs.250,000
Deduct Proposed Dividend from that
So adjusted net value is Rs.230,000
i.e.Rs.11.50 per share
X ltd acquired the share for Rs.15 each
Goodwill = 12,000 shares X 3.50 = Rs.42,000

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