Discuss and Download CA Final Exam question paper Nov 2013

FR is very lengthy paper

Hi,

I have a doubt in Nov-13 question paper, solution to Q-4 (Consolidation). Please clarify. While adjusting the profits of Rat Ltd for preference dividend for current and previous year, why is the preference dividend for previous year also Rs. 2,250/-. Cat Ltd bought preference shares only in Current year. The preference dividend to outsiders for the previous year should be 1,82,250/- (20,25,000*9%). It is known that these were subscribed in previous year itself as it states that Cat Ltd purchased from existing shareholders. Please help.

Hi,

I have a doubt in Nov-13 question paper, solution to Q-4 (Consolidation). Please clarify. While adjusting the profits of Rat Ltd for preference dividend for current and previous year, why is the preference dividend for previous year also Rs. 2,250/-. Cat Ltd bought preference shares only in Current year. The preference dividend to outsiders for the previous year should be 1,82,250/- (20,25,000*9%). It is known that these were subscribed in previous year itself as it states that Cat Ltd purchased from existing shareholders. Please help.