Analysis of profit problem-consolidated financial statements

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Finance
368 Points Joined November 2011

Hi All,

I have attached a problem, please help in solving "Analysis of Profits" part of the solution.

Date of Acquisition is 1-Jan-03.Interim dividend(Rs.4000) was paid on 30 Nov 2002. Please let me know if this will be accounted as pre-acquisition dividend and reduced from opening balance of P&L Account(Rs.12,000). If not, then why not.

Regards,

Prachi.

Attached File : 694153 1388875 question consolidated financial statements.doc downloaded: 208 times
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On 11 December 2014 at 09:52 Report
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B.Com CA & CS
416 Points Joined May 2008

HI prachi,

Such belongs to the profit of financial year or part of financial year before it was being acquired.

 

ttarget='_blank' rel='nofollow' hrefore

 

Reserves as on 31.12.2002 is adjusted to that extend which will be incorporated in the books of the Holding Co..

 

In short opeining balance will reduced to the extend of such dividend but it not a pre acquisition dividend.

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On 11 December 2014 at 12:08


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