How to treat dividend in the consolidated financial statement when holding company acquired shares in subsidiary on different dates.
For eg. H Ltd acquired 8000 shares on 1/4/2009 at Rs 110000 and on 31/7/2009 6000 shares at Rs 86000. The shares purchased on 31.7.2009 are ex-dividend and ex-bonus from existing holder. On 31/7/2009 dividend at 10% was received from S Ltd and was credited to P&L A/c. On 31/7/2009 it received bonus share from S Ltd. in the ratio of 1 share on every 4 shares held. The balance in the P&L A/c of S Ltd. as on 31/3/2010 is Rs 60000 and net profit during the year is Rs 24000. The balance in the P&L A/c as on 31/3/2010 is after the issue of bonus shares made on 31/7/2009.
Share capital of S Ltd. as on 31.03.2010 is Rs 200000 (Rs 10 per share)
Show treatment on Analysis of Profits of S Ltd.
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