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
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.
Step by Step Solution
There are 3 Steps involved in it
Step: 1
1 Outstanding number of shares of Company B100000 2 Converti...See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started