Question

2,00,000 (C) 1,50,000 (d) 4,00,000
17. On 30th June 2019, H Ltd. acquired two-third of the shares of S Ltd. (with a
capital of 6,00,000) for 4,50,000. The balance sheet of S Ltd. showed a debit
balance of 3,00,000 on 1.1.2019 and a credit balance of 1,80,000 on 31.12.2019.
calculate the amount of goodwill to be shown in consolidated balance sheet.
2 1
ho
2 1 0​

Answer 1

Answer:

H Ltd. holds the entire share capital of S Ltd. which made a loss of Rs 50,000 in its first year and a profit of Rs 1,10,000 in its second year. In the second year S Ltd. paid a dividend of Rs 40,000. Show journal entries in the books of the holding company assuming that the latter company brings into account all the losses and profits of the subsidiary company.