asset value not given
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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asset value not given

Transcribed Image Text:On 1april2014, company A recently acquired 75% of
the equity shares of company B. Company B had
total shares outstanding of 100,000 of a face value
of Rs. 10. It had also issued convertible debentures,
Company B had issued 20,000 such debentures and
each debenture was convertible into 2.5 equity
shares of a face value of Rs. 10. The debentures
were convertible into equity shares before any
company acquired a majority stake in company B.
Further, company B had made profits of INR 10
crores in the financial year ended 31 March 2014,
which represented only 5% of its total reserves on
the b/s as on April 1,2014. Company A's outstanding
and paid up share capital was INR 200 crores and it's
reserves and surplus were INR 500 crore.
Company A acquired company B by paying a
consideration of INR 450 crore. using the above
information, please calculate:
A. Goodwill on consolidation
B. Minority Interest
C. company A's share in consolidated profits
D. Minority share in consolidated profits.
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