as 21

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gopal agarwal (Querist)
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03 January 2011 company a controls the composition of board of co b to arrive economic benefit....as per as 21
now net worth of company b is 2 crores .a is is paying 1 crores to the shareholders(100%) of b.

how it will be accounted in the books of a.
a has decided to consolidate company b in its books of account

if a is [paying 1 crores to 70 % shareholders of b then what will be the accounting entry.
please reply fast.
it is most urgent

Vivek Raju P

Vivek Raju P (Expert)
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03 January 2011 do you mean payment to acquire the remaining 70% and make b as a fully owned subsidiary of A ?

gopal agarwal

gopal agarwal (Querist)
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04 January 2011 if a will pay 70 % then 70% stake will be acquired but 100% control through directors will be taken.
i think the scenario is possible.

sima

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gopal agarwal

gopal agarwal (Querist)
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05 January 2011 can anybody reply this query