HighFloat
(I love to Read)
(146 Points)
Replied 04 December 2013
Parankusa
( )
(78 Points)
Replied 08 March 2014
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.
Parankusa
( )
(78 Points)
Replied 08 March 2014
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.
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