Assume H Ltd purchased 80% of the equity shares of S Ltd at a price of Rs 90,000 two years ago when 'S Ltd had equity share capital of Rs 100,000 and P & Loss debit balance (accmulated losses) of Rs 20,000.If now 2 years later,S Ltd's accumulated profits balance is Rs 60,000, what would be the amount of post acquisition profits attributable to H Ltd O a. Rs 56,000 O b. Rs 64,000 OC. Rs 72,000 O d. None of the options

Assume H Ltd purchased 80% of the equity shares of S Ltd at a price of Rs 90,000 two years ago when 'S Ltd had equity share capital of Rs 100,000 and P & Loss debit balance (accmulated losses) of Rs 20,000.If now 2 years later,S Ltd's accumulated profits balance is Rs 60,000, what would be the amount of post acquisition profits attributable to H Ltd O a. Rs 56,000 O b. Rs 64,000 OC. Rs 72,000 O d. None of the options

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Question

O a. Rs 56,000

O b. Rs 64,000

OC. Rs 72,000

O d. None of the options

Definition Definition Remaining net income of the company after the required dividends are paid to shareholders. This surplus money is usually invested back into the business to expand its business operations or launch a new product.

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