CA Inter P1 · Chapter 8 · Question 3 of 10
Case: Hiranya Ltd holds 80% of Sona Ltd. At the consolidated balance sheet date, Sona Ltd has share capital of ₹10,00,000 and total reserves of ₹7,00,000, of which ₹4,00,000 were pre-acquisition. Minority interest to be shown in the consolidated balance sheet under AS 21 is:
Test yourself: pick an answer
Reveal answer & explanation
Correct answer: C) ₹3,40,000
Explanation
Minority interest is the minority's share of the subsidiary's net assets at the consolidated balance sheet date, including both pre- and post-acquisition reserves. MI = 20% x (10,00,000 + 7,00,000) = ₹3,40,000.
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