Arka Bose (None) (313 Points)
05 October 2010Suppose in balance sheet for the year ending 2009 H Ltd has investment in shares of S Ltd of Rs 150000
Now,in adjustment,it is already said that H Ltd received dividend of Rs 12000 from the profits of S Ltd of the year 2007,which they have already credited it to their investment A/c.
So my question is,are there further adjustments needed since they have done everything correctly?
MOHIT MAHAJAN
(LCS, ACA)
(2050 Points)
Replied 05 October 2010
While calculating Cost of control Invsestment should be shown net of dividend
C.A. LINESH PATIL
(CA)
(910 Points)
Replied 09 October 2010
Nothing further need to be done as u said they have correctly accounted the entries in investment account so investment account balance is already net off so therefore no need to reduce again dividend received from investment account closing balances.
CA rafiq
(ca)
(129 Points)
Replied 11 October 2010
quetion of pre acquisition dividend comes when the dividend received is credited to p&l a/c. here the pre acquisition dividend is credited to investments accounts. so no adjustments will be done.
as per ur question if before adjusting dividend is 150000 then u have to deduct rs. 12000 from this 150000. otherwise no adjustments.
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