Gamma Ltd. acquired 24,000 equity shares of 10 each, in Beta Ltd. on October 1, 2023 for 4,60,200. The profit and loss account of Beta Ltd. showed a…

Impact of Revaluation of Plant and Machinery will be as - Particulars ₹ Book value of Plant and Machinery as on 01-04-2023 2,25,000 Depreciation Rate = 22,500/2,25000 x100 10% Book value of Plant and Machinery as on 01-10-2023 after six months depreciation @10% (2,25,000-11,250) 2,13,750 Revalued at 2,70,000 Revaluation profit (2,70,000-2,13,750) 56,250 Share of Gamma Limited in Revaluation Profit (80%) 45,000 Share of Minority in Revaluation profit (20%) 11,250 Additional Depreciation on appreciated value to be charged from post-acquisition profits (10% of 22,5,000 for 6 months) + (10% of 2,70,000 for 6 months) less - 22500 (as already charged) 2,250 Share of Gamma Limited in additional depreciation that will reduce its share (80%) in post-acquisition profit by 1,800 Share of Minority Interest in additional depreciation 450 Working note: Percentage of holding: No. of Shares Percentage Holding Co. 24,000 (80%) Minority shareholders : 6,000 (20%) TOTAL SHARES 30,000