Homework Answers
5. Calculation of dividend = 15000* 80% = 12000
6. Investment in Snap = Calculation of Intangible asset during acquisition = 625000(500000/80%) - 410000 = 215000
Total Asset as on Jan 1 2009 = 960000+215000 = 1175000
Calcuation of non controlling interest in Snap = 625000*20% = 125000
Calculation of Investment in Snap = 625000+15000 - 128000 = 512000
7. non controlling interest in Snap at the end of the year = 125000 + 20%*15000 = 128000
8. Proposed Dividend entry = Profit & loss a/c Dr. 15000
Proposed Dividend a/c cr. 15000
Dividend Paymen entry = Proposed Dividend a/c Dr. 15000
To cash a/c Cr. 15000
Transfer of Profit in P&L A/c
P&La/c Dr. 15000
To Retained Earning a/c Cr. 12000
To Non Controlling interest a/c Cr. 3000
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