Practice Test

Q1) Holding company, in relation to one or more other companies, means a company of which such companies are - Show Answer

Q2) Which of the following would qualify a company to be regarded as a parent of another? Show Answer

Q3) Subsidiary company in relation to any other company (that is to say the holding company), means a company in which the holding company - Show Answer

Q4) Pre-acquisition profit in subsidiary company is considered as: Show Answer

Q5) Which section of the Companies Act, 2013 requires the preparation of consolidated financial statements? Show Answer

Q6) Associate company in relation to another company, means - Show Answer

Q7) Holding company holds more than _____ voting power in subsidiary company. Show Answer

Q8) In associate companies, one company holds _____ of share capital. Show Answer

Q9) Term ‘subsidiary company’ is defined in: Show Answer

Q10) Term ‘subsidiary company’ is defined in: Show Answer

Q11) The company shall attach along with its financial statement, a separate statement containing the salient features of the financial statement of its subsidiary or subsidiaries in _____ as per Companies (Accounts) Rules, 2014. Show Answer

Q12) Minority interest represents - Show Answer

Q13) Term ‘associate company' is defined in - Show Answer

Q14) Holding company’s share in revenue profits of subsidiary company is adjusted in: Show Answer

Q15) Which of the following statements are correct with regard to preparation of consolidated financial statements?
A. To be a subsidiary a parent should hold 100% of its equity shares.
B. Consolidation is merely addition to¬gether of two Statements of financial position.
C. In consolidation a subsidiary and an associate are treated identically.
D. Consolidated balance sheet excludes assets not owned by the group.
Select the correct answer from the options given below.
Show Answer

Q16) While preparing a consolidated financial statements, in share capital held by outsider if we add pre-acquisition post¬acquisition profits proportionate to share capital held by those outsider resultant figure will be - Show Answer

Q17) If cost of acquisition of shares in the subsidiary company is less than intrinsic value of the shares of subsidiary company on the date of acquisition then resultant figure will be: Show Answer

Q18) Issue of bonus shares by the subsidiary company: Show Answer

Q19) Which of the following will affect cost of control? Show Answer

Q20) Which of the following statement(s) apply when consolidating statements of financial position?
I. All inter-company balances should be cancelled.
II. The group share of the whole of subsidiary’s profit is included within group profit.
III. Inter-company profit should be elim¬inated unless it is realized by sale to an outsider.
IV. Subsidiary's asset values need to be updated at the end of each accounting period.
Select the correct answer from the options given below.
Show Answer

Q21) Issue of bonus shares by subsidiary company out of pre-acquisition profit: Show Answer

Q22) Holding company's share in preacquisition losses of subsidiary - Show Answer

Q23) Holding company’s share in pre¬acquisition profits of subsidiary - Show Answer

Q24) With regard to preparing consolidated statements of financial position which of the following statements is/are correct?
1. The consolidated statement of finan¬cial position reports only parent's goodwill.
2. Any unrealized profit made by a subsidiary should be eliminated from its profit.
3. An amount owed to each other within the group needs to be cancelled.
4. Only the group portion of any unrealized profit need be eliminated.
Select the correct answer from the options given below.
Show Answer

Q25) Dividend received out of pre-acquisition profits of subsidiary Show Answer

Q26) If cost of acquisition of shares in the subsidiary company is more than intrinsic value of the shares of subsidiary company on the date of acquisition then resultant figure will be: Show Answer

Q27) Deduction of outsiders liabilities from total assets then dividing it by number of shares, the resultant figure will be - Show Answer

Q28) Which of the following treatment of ‘Share Capital' of subsidiary company is correct? Show Answer

Q29) If closing balance of general reserve of subsidiary is more than opening balance of general reserve then it can be concluded that - Show Answer

Q30) If closing balance of general reserve of subsidiary is less than opening balance of general reserve then it can be concluded that - Show Answer

Q31) Unrealized profit on goods sold and included in stock is deducted from: Show Answer

Q32) Which of the following treatment is correct for mutual debts with regard to purchase and sale of goods between holding and subsidiary company? Show Answer

Q33) Which of the following statements are incorrect with regard to preparation of a consolidated statement of financial position?
(a) Gain on fair valuation of a subsidi¬ary's asset is a pre-acquisition profit.
(b) Non-controlling interest does not deserve any portion of fair valuation gain.
(c) If an asset is not reported in the subsidiary's ledger it need not be fair valued.
(d) Gain on fair valuation of subsidiary’s asset inflates the cost of goodwill.
Select the correct answer from the options given below.
Show Answer

Q34) On a consolidated balance sheet, if the shares of a company have been bought for more than the balance sheet value then the difference would appear as: Show Answer

Q35) If less than 100% of a subsidiary’s share capita] has been acquired then what is the rule for inclusion of the subsidiary’s assets on the consolidated balance sheet? Show Answer

Q36) What is the term used to describe dividends paid by one company in the group to another in the same group? Show Answer

Q37) Which of the following is true? Show Answer

Q38) How is a negative goodwill reported on the consolidated statement of financial position? Show Answer

Q39) If stock is sold for a profit from one group member to another, how should this be dealt with in the final accounts? Show Answer

Q40) The claim by outsiders to assets featured on a consolidated balance sheet is known as: Show Answer

Q41) On consolidation, if the total of the fair value of the assets acquired is less than the whole purchase consideration then the differences should be treated as: Show Answer

Q42) When dealing with consolidated balance sheets, the expression cost of control could be used instead of: Show Answer

Q43) Which of the following is not normally considered the right of an ordinary shareholder? Show Answer

Q44) Which of the following is the best theoretical justification for consolidated financial statements? Show Answer

Q45) Which of the following statement is false? Show Answer

Q46) Preparation of consolidated Balance Sheet of holding company and its subsidiary company is as per - Show Answer

Q47) Pre-acquisition dividend received by Holding company is credited to: Show Answer

Q48) Post acquisition dividend received by Holding Company is: Show Answer

Q49) Which exchange rate will be considered for conversion of share capital of subsidiary company? Show Answer

Q50) The group’s share of the pre-acquisition reserves of a subsidiary form part of the: Show Answer

Q51) As per AS-21, a Consolidated Financial Statement will not be prepared by the parent company when- Show Answer

Q52) In which of the following case the C Ltd. will be subsidiary of A Ltd. Show Answer

Q53) If A Ltd. is proved to be a subsidiary company of B Ltd., C Ltd. & D Ltd., then which company is liable to prepare Consolidated Financial Statement? Show Answer

Q54) Goodwill = ? Show Answer

Q55) H Ltd. acquires 70% of the equity shares of S Ltd. on 1.1.2019. On that date, paid-up capital of S Ltd. was 10,000 equity shares of Rs. 10 each; accumulated reserve balance was Rs. 1,00,000. H Ltd. paid Rs. 1,60,000 to acquire 70% interest in the S Ltd. Assets of S Ltd. were revalued on 1.1.2019 and a revaluation loss of Rs. 20,000 was ascertained. Which of the following is correct in relation to cost of control of group consolidated financial statement? Show Answer

Q56) H Ltd. holds 7,500 shares of S Ltd. Total shares of S Ltd. are 10,000 of Rs. 10 each. General Reserve and Profit & Loss balance of S Ltd. are Rs. 35,000 & Rs. 27,500 respectively out of which 40% relates to post-acquisition period. Minority Interest = ? Show Answer

Q57) H Ltd. holds 75% Shares in S Ltd. In January, 2019 S Ltd. sold to its parent company H Ltd. goods costing Rs. 15,000 for Rs. 20,000. On 31 st March, 2019 hal f of these goods were lying as unsold in godowns of H Ltd. Which of the following is correct treatment for unrealized profit on stock while preparing consolidated financial statement of H Ltd. & S Ltd.? Show Answer

Q58) S Ltd. is subsidiary of H Ltd. S Ltd. remitted a cheque for Rs. 5,000 to H Ltd. on 30th March, 2018, which was received by H Ltd. on 1st April, 2019. Accounting year of both companies closed on 31st March 2019. Which of the following treatment is correct in consolidated financial statement for cheque in transit? Show Answer

Q59) A parent owns two third of the subsidiary's equity. As at a year end the subsidiary's inventory includes goods sent to it by the parent invoiced at Rs. 3,60,000. Parent has purchased these goods for Rs. 3,00,000. Which of the following are the correct entries for eliminating unrealized profit? Show Answer

Q60) What is the amount of the unrealized profit to be eliminated if the parent's year- end inventory includes at Rs. 5,40,000 goods invoiced to it by its 60% owned subsidiary at cost plus 25%. Show Answer

Q61) Subsidiary’s inventory at the year end included Rs. 1,80,000 purchased from its parent. Further goods invoiced by the parent at Rs. 45,000 were in transit. The parent invoices the subsidiary at cost plus 20%. The amount of unrealized profit that needs to be eliminated from the parent's retained earnings would be: Show Answer

Q62) Any amount owed by one member of a group to another need to be cancelled when preparing the consolidated statement of financial position. As at the year end the parent’s receivable includes Rs. 90,000 due from the subsidiary; whereas the subsidiary reports that it owes only Rs. 60,000 to the parent. Difference has arisen because of cash in transit. Which is the correct way of dealing with the situation when preparing the consolidated statement of financial position? Show Answer

Q63) As at the year end the parent's statement of financial position reports rent receivable as an asset at Rs. 60,000 and this includes Rs. 15,000 due from the subsidiary. Subsidiary reports rent payable as Rs. 15,000. Which of the following will be included in the consolidated statement of financial position? Show Answer

Q64) The parent paid Rs. 48,000 to acquire 75% of 3,000 ordinary shares of Rs. 10.00 and reserves of the subsidiary were reported as Rs. 35,000 and fair valuation of its assets identified a gain of Rs. 5,000. What is the goodwill/capital reserve of the subsidiary on this date? Show Answer

Q65) On 1.7.2012 H Ltd. acquired 7,500 shares of Rs. 100 each in S Ltd. at a cost of Rs. 160 per share. The total number of shares in S Ltd. is 10,000. In August, 2012 S Ltd. paid a dividend of Rs. 10 per share for the year ending 31.3.2012. In September, 2012 H sold 500 shares in S Ltd. @ Rs. 155. At what figure will be the Investment Account now stands in the books of H Ltd.? Show Answer

Q66) Total of assets side of subsidiary's balance sheet is Rs. 8,10,000 which includes preliminary expense Rs. 8,000. Outsider's liability in balance sheet was Rs. 1,60,000. Holding company holds 75% shares of subsidiary.
Minority Interest - ?
Show Answer

Q67) X Ltd. acquired 80% equity shares in Y Ltd. on 1st July, 2019 at cost price of Rs. 4,48,000. Total equity share capital of Y Ltd. was Rs. 2,00,000. Share of X Ltd. in pre¬acquisition profits of Y Ltd. was Rs. 1,27,000. Goodwill = ? Show Answer

Q68) S Ltd. had purchased goods of Rs. 80,000 from its holding company H Ltd. out of which goods invoiced at Rs. 50,000 were in stock on 31st March, 2020. H Ltd. added 25% to cost to arrive at invoice price. Stock reserve to be eliminated from the consolidated balance sheet = ? Show Answer

Q69) Take the data of above question and calculate Minority Interest? Show Answer

Q70) Take the data of above question and calculate Minority Interest? Show Answer

Q71) It is compulsory for a holding company to purchase the equity shares of a subsidiary company: Show Answer

Q72) In consolidated balance sheet it will not be shown: Show Answer

Q73) If a holding company sold the goods costingRs. 27,000 atRs. 36,000 to its subsidiary company and on the date of consolidated balance sheet the goods ofRs. 6,000 remains at subsidiary company from these goods then the unrealised profit will be : Show Answer

Q74) The minority share holders of subsidiary company are authorised for: Show Answer

Q75) Holding company means : Show Answer

Q76) The holding company has been defined under,the following section of Company Act, 2013 Show Answer

Q77) The meaning of Subsidiary company is Show Answer

Q78) Limited is the holder of 55% shares of B Limited, A Limited: Show Answer

Q79) The share of holding company in the capital and reserve of subsidiary company isRs. 3,90,000 and the investment in shares of subsidiary company isRs. 4,20,000. This difference is called. Show Answer

Q80) H Company is a holding company and S Company is subsidiary company. The goods castingRs. 20,000 is included in the stock of S Company which has been purchased from H Company. H Company sold the goods at a profit of 10% on Selling price. Unrealized profit will be: Show Answer

Q81) Consolidated Financial Statements are prepared on the principle that: Show Answer

Q82) The time interval between the dates of balance sheets of holding company and subsidiary company for the purpose of consolidation of accounts. Show Answer

Q83) PIONEER LTD. acquired 3200 Equity Shares of ARYAN LTD. on March 31, 2018. The Share Capital of ARYAN LTD. consists of 4000 Equity Shares ofRs. 100 each. The cost of investments isRs. 6,80,000 ARYAN LTD. made a bonus issue on March 31, 2018 of one Equity Share for every four shares held by its shareholders. If the share in the capital profits in ARYAN LTD. isRs. 2,65,600 (after adjustment of Bonus), the amount of Goodwill/Capital Reserve shown in the Consolidated Balance Sheet on March 31, 2016 is Show Answer

Q84) GAINT LTD. acquired 80% shares of ZOOM LTD. on January 1,2009. Trade creditors of ZOOM LTD. includeRs. 45,000 for goods supplied by GAINT LTD. on which the latter made a profit ofRs. 9,000. One-fifth of the goods are still in the stock on March 31,2016.
The value of stock to be considered for the purpose of consolidation is
Show Answer

Q85) Wealth Ltd. acquired 55% shares of Gold Ltd. on February 01, 2008. Wealth Ltd. sells goods at cost plus 20%. During the year 2008-09, it supplied goods withRs. 90,000 to Gold Ltd. out of which, 60% are still in stock of Gold Ltd. as on March 31,2009. The unrealized profit on stock to be adjusted while preparing Consolidated Balance Sheet as on M ~rch 31,2009 is Show Answer

Q86) SUNNY LTD. acquired 70% shares of HARRY LTD. on October 01, 2009 at a price of t 5,00,000. The Balance of Profit and Loss account of HARRY Ltd. is as under:
As on Balance
April 01,2009 Rs. 80,000 Debit balance
March 31,2010 Rs. 1,60,000 Credit balance
The share of Capital Profit of SUNNY LTD. at the time of consolidation, is:
Show Answer

Q87) ZOOM LTD. acquired 80% of shares of DARK LTD. On March 31,2018 for consideration ofRs. 5,20,000. The share capital of DARK LTD. comprises of 4000 Equity Shares ofRs. 100 each. The Capital Profit and Revenue Profits of DARK LTD. wereRs. 3 lakh andRs. 1 lakh on the date of acquisition. The amount of minority interest shown in the consolidated Balance Sheet as on March 31,2018 is Show Answer

Q88) On July 01. 2018 GRENISON LTD. acquired 7000 Equity shares of NARMADA LTD. for consideration ofRs. 8,00,000. The Share Capital of NARMADA LTD. consists of 10,000 Equity shares of Rs. 100 each.
The balances of General Reserve and Profit and Loss Account of NARMADA LTD. are as under:
As on July 01,2018 As on March 31,2019

General Reserve 1,70,000 2,00,000
Profit and Loss A/c 1,50,000 1,75,000
What will be the amount of Minority Interest to be shown in Consolidated Balance Sheet as on March 31,2019:
Show Answer

Q89) A Ltd. had acquired 80% share in the B Ltd. for Rs. 25 lacs. The net assets of B Ltd. on the day are Rs. 22 lacs.
During the year A Ltd. sold the investment for Rs. 30 lacs and net assets of B Ltd. on the date of disposal was Rs. 35 lacs. The Profit or Loss on disposal of this investment to be recognised in consolidated financial statement is :
Show Answer

Q90) Economic Activity of Investment Associate Ltd. is controlled by Holding Ltd. and Subsidiary Ltd. State the Relevant Accounting Standard (out of AS 13, AS 21, AS 23, AS 27) applicable if Holding Ltd. holds. Show Answer

Q91) ROOM LTD. holds 25% share in DOOR LTD. at a cost of Rs. 7.50 lakhs as on 31.3.2005 out of DOOR’S share capital and Reserve of Rs. 30 lakhs each. For the year ended 31.3.2012, DOOR LTD. made a profit of Rs. 2,40,000 and 30% of it was distributed as dividend. In the Consolidated .Financial Statement, the carrying amount of investment as at 31.3.2012 will be Show Answer

Q92) SKY LTD. purchased a special machinery from Earth Ltd. forRs. 50 Lakhs in consideration of 50,000 equity shares ofRs. 100 each of the company. Where this transaction will be reflected in the Cash Flow Statement as per AS-3? Show Answer

Q93) BANSAL LTD. had acquired 75% share of NAVINA LTD. forRs. 27 lakh. The Net Assets of NAVINA LTD. on the day areRs. 24 lakh. During the year Bansal Ltd. sold the investment forRs. 32 lakh and Net Assets of Navina Ltd. on the date of disposal wasRs. 40 lakh. The Profit/Loss on disposal of this investment to be recognized in consolidated financial statement is Show Answer

Q94) Peeru Ltd. acquired 80% Equity shares of Pimo Ltd. on 1st April, 2016. On 31st March, 2018, goods worthRs. 65,000 purchased from Peeru Ltd., were included in stock of Pimo Ltd. Peeru Ltd. made a profit of 25% on cost. At the time of preparation of consolidated Balance Sheet the amount of unrealized profit on stock will be Show Answer

Q95) Patel Ltd. purchases 75% shares out of 60000 Equity Shares ofRs. 10 each in Chandu Ltd. atRs. 7,95,000. On that date balance of Capital Reserve; Securities Premium; General Reserve and Discount on issue of Debentures wereRs. 69,000;Rs. 1,20,000;Rs. 2,15,000; andRs. 40,000 respectively. The amount of minority interest will be Show Answer

Q96) X Ltd. acquired 150000 shares of Y Ltd. on August, 2016. The Equity Capital of Y Ltd. isRs. 20 lakh ofRs. 10 per share. The machinery of Y Ltd. is revalued upwards byRs. 4,00,000. The minority group interest shown in the consolidated Balance Sheet as on March 31,2017 was Show Answer

Q97) It is compulsory for a holding company to purchase the equity shares of a subsidiary company: Show Answer

Q98) In consolidated balance sheet it will not be shown: Show Answer

Q99) If a holding company sold the goods costingRs. 27,000 atRs. 36,000 to its subsidiary company and on the date of consolidated balance sheet the goods ofRs. 6,000 remains at subsidiary company from these goods then the unrealised profit will be: Show Answer

Q100) The minority share holders of subsidiary company are authorised for: Show Answer

Q101) Holding company means: Show Answer

Q102) The holding company has been defined under the following Section of Company Act, 2013 Show Answer

Q103) The meaning of subsidiary company is: Show Answer

Q104) A Limited is the holder of 55% shares of B Limited, A Limited: Show Answer

Q105) The share of Holding company in the capital and reserve of subsidiary company isRs. 3,90,000 and the investment in shares of subsidiary company isRs. 4,20,000. This difference is called. Show Answer

Q106) H Company is a holding company and S Company is subsidiary company. The goods castingRs. 20,000 is included in the stock of S Company which has been purchased from H Company. H Company sold the goods at a profit of 10% on selling price. Unrealized profit will be: Show Answer

Q107) Percentage of shares of subsidiary company which is purchased by holding company is: Show Answer

Q108) Definition of a subsidiary company has been given in Indian Companies Act, 2013: Show Answer

Q109) Pre-acquisition reserve is- Show Answer

Q110) In case of holding company, Capital profit arising due to revaluation of assets and liabilities of subsidiary co. is- Show Answer

Q111) Post acquisition profit is- Show Answer

Q112) A holding company is best defined as one which: Show Answer

Q113) A non-controlling interest is best defined as: Show Answer

Q114) The group's share of the pre-acquisition reserves of a subsidiary form part of: Show Answer

Q115) If AB Ltd buys more than 50% of the shares in CD Ltd then which of the following statements accurately summarises the relationship between these two firms? Show Answer

Q116) When someone buys ordinary shares in another company then they are entitled to all bar one of the following: Show Answer

Q117) On a consolidated balance sheet, if the shares of a company have been bought for more than the balance sheet value then the difference would appear as: Show Answer

Q118) If less than 100% of a subsidiary’s share .capital has been acquired then what is the rule for inclusion of the subsidiary’s assets on the consolidated balance sheet? Show Answer

Q119) What is the term used to describe dividends paid by one company in the group to another in the same group? Show Answer

Q120) If stock is sold for a profit from one group member to another, how should this be dealt with in the final accounts? Show Answer

Q121) The claim by outsiders to assets featured on a consolidated balance sheet is known as: Show Answer

Q122) Under acquisition accounting, the fair value of an asset will be the: Show Answer

Q123) On consolidation, if the total of the fair value of the assets acquired is less than the whole purchase consideration then the differences should be treated as: Show Answer

Q124) If parent undertaking owns 60% of subsidiary Lev Ltd and Lev Ltd itself owns 40% of another subsidiary Hinds Ltd. The parent company owns how much of Hinds Ltd? Show Answer

Q125) When dealing with consolidated balance sheets, the expression cost of control could be used instead of: Show Answer

Q126) Why do wholly owned subsidiaries not have to prepare consolidated financial statements? Show Answer

Q127) What term is used to describe an entity which is jointly controlled by the reporting entity and one or more others under a contractual agreement? Show Answer

Q128) In acquisition accounting, the ‘fair value’ of quoted investments should be based upon: Show Answer

Q129) A firm which has significant influence over another firm but does not actually control the firm or have a dominant influence over the firm’s actions would refer to the firm it has influence over as: Show Answer

Q130) If a parent undertaking owns 75% of a subsidiary Clews Ltd, and Clews Ltd itself owns 20% of another subsidiary, Chase Ltd, then the parent company owns how much of Chase Ltd? Show Answer

Q131) Entities which the reporting entity holds an interest on a long-term basis and which are jointly controlled by the reporting entity and one or more other ventures under a contractual arrangement would be known as which of the following? Show Answer

Q132) If a parent undertaking owns 60% of a subsidiary Batnak Ltd, and Batnak Ltd itself owns 33% of another subsidiary, Brassington Ltd, then the parent company owns how much of Brassington Ltd? Show Answer

Q133) Which of the following is not normally considered the right of an ordinary shareholder? Show Answer

Q134) If a parent undertaking owns 80% of a subsidiary Merrett Ltd, and Merrett Ltd itself owns 40% of another subsidiary, Yates Ltd, then the parent company owns how much of Yates Ltd? Show Answer

Q135) Preparation of consolidated Balance Sheet of Holding Co. and its subsidiary company as per Show Answer

Q136) The share of outsiders in the Net Assets in subsidiary company is known as under: Show Answer

Q137) Pre-acquisition profit in subsidiary company is considered as : Show Answer

Q138) Excess of cost of investment over paid up value of the shares is considered as: Show Answer

Q139) Excess of paid up value of the shares over cost of investment is considered as: Show Answer

Q140) Profit earned before acquisition of share is treated as Show Answer

Q141) Profit earned after acquisition of share is treated as Show Answer

Q142) Preparation of consolidated statement as per AS 21 is Show Answer

Q143) Holding Co. share in revenue profits of subsidiary company is adjusted in : Show Answer

Q144) Unrealised profit on goods sold and included in stock is deducted from : Show Answer

Q145) Which of the following statement is true: Show Answer

Q146) Consolidated financial statements are prepared on the principle: Show Answer

Q147) Minority Interest includes : Show Answer

Q148) The Time interval between the date of acquisition of shares in subsidiary
company and date of Balance Sheet of Holding Company is known as :
Show Answer

Q149) Pre-acquisition dividend received by Holding company is credited to Show Answer

Q150) Post Acquisition dividend received by Holding Company is debited to : Show Answer

Q151) Which Exchange rate will be considered for conversion of share capital of subsidiary company Show Answer

Q152) A subsidiary company shall be excluded from consolidation when: Show Answer

Q153) Equity holder of a company who does not have the voting control of the company, by virtue of his or her below fifty percent ownership of the company's equity capital, termed as: Show Answer

Q154) H Ltd. is a holding company of S Ltd. During the year 2018-19, Bills Receivable amounted to Rs 4,00,000, out of total bills receivable of Rs 5,00,000 received from S Ltd., were discounted by H Ltd. and S Ltd. had endorsed to its creditors all the bills received from H Ltd. amounting to Rs 3,00,000. At the end of the year the amount of mutual debtors will be: Show Answer

Q155) The main purpose of the preparation of consolidate statement is: Show Answer

Q156) On 30th June, 2018, two-third of the shares of S Ltd. (with total capital of Rs 48,00,000) was acquired by H Ltd. The balance sheet of S Ltd. showed a debit balance Rs 24,00,000 on 1st January, 2018 and a credit balance of Rs 14,40,000 on 31st December, 2018. The investment by H Ltd. in shares of S Ltd. is Rs 36,00,000. Calculate the "cost of control" in this acquisition: Show Answer

Q157) Profit on revaluation of assets to be shown as _______ consolidated Balance Sheet. Show Answer

Q158) What is the amount of the unrealized profit to be eliminated, if the parent's year-end inventory includes at Rs 5,40,000 goods invoiced to it by its 60% owned subsidiary at cost plus 25%? Show Answer

Q159) Pre-acquisition profit in subsidiary company is considered as: Show Answer

Q160) If cost of acquisition of shares in the subsidiary company is more than intrinsic value of the shares of subsidiary company on the date of acquisition, then resultant figure will be: Show Answer

Q161) Unrealized profit on goods sold and included in stock is deducted from: Show Answer

Q162) When the holding company purchases the shares at a price above the nominal value, the excess price paid represents:
Show Answer

Q163) A Ltd. paid Rs 9,00,000 for 70% of equity in B Ltd. on 1st April, 2019. On this date B Ltd. had share capital of Rs 10,00,000 and retained earnings of Rs 5,00,000. All of the assets and liabilities of B Ltd. were recorded at fair value. A Ltd. interest in the B. Ltd. would be: Show Answer

Q164) Every company having turnover of___ during the immediately preceding financial year shall constitute a Corporate Social Responsibility Committee of the Board. Show Answer

Q165) A company in which only the majority of shares (more than 50%) are owned by the holding company, it is said to be a/an______. Show Answer

Q166) The main purpose of the preparation of consolidated statements is: Show Answer

Q167) If the holding company's year-end stock includes Rs 2,70,000 goods invoiced to it by its 60% owned subsidiary at cost plus 25%, what is the amount of unrealized profit ? Show Answer

Q168) In consolidated balance sheet it will not be shown: Show Answer

Q169) The minority share holders of subsidiary company are authorized for Show Answer

Q170) The share of holding company in the capital and reserve of subsidiary company is Rs 3,90,000 and the investment in shares of subsidiary company is Rs 4,20,000. This difference is called Show Answer

Q171) Definition of a subsidiary company has been given in Indian companies act, 2013: Show Answer

Q172) The group's share of the pre-acquisition reserves of a subsidiary form part of: Show Answer

Q173) A firm which has significant influence over another firm but does not actually control the firm or have a dominant influence over the firms actions would refer to the firm it has influence over as: Show Answer