Question

Dividends paid to non-controlling shareholders

a. increase the non-controlling interest account

b. decrease the non-controlling interest account

Answer 1

Solution:-

Generally what happens is that the Non Controlling Interest's share of the dividends paid by the company is not eliminated on consolidation and is an outflow for the company and hence it always acts to reduce the non controlling interests share in the equity of the company and hence decrease the non controlling interest account.