Holding Company problem

While calculating Cost of control Invsestment should be shown net of dividend

Nothing further need to be done as u said they have correctly accounted the entries in investment account so investment account balance is already net off so therefore no need to reduce again dividend received from investment account closing balances.

quetion of pre acquisition dividend comes when the dividend received is credited to p&l a/c. here the pre acquisition dividend is credited to investments accounts. so no adjustments will be done.

as per ur question if before adjusting dividend is 150000 then u have to deduct rs. 12000 from this 150000.  otherwise no adjustments.