Sun Limited has acquired 40% share in Moon Ltd. for 500,000 on 01.07.2023. Moon Ltd. is holding 40% stake in Star Limited. Now, sun limited can…
CA Intermediate · Advanced Accounting · MTP · January 2025
Sun Limited has acquired 40% share in Moon Ltd. for 500,000 on 01.07.2023. Moon Ltd. is holding 40% stake in Star Limited. Now, sun limited can exercise significant influence on Moon Limited. Moon limited declared dividend of 80,000 for the Financial Year 2022-23 on 15.09.2023. For the year 2023-24, Moon Ltd. earned profit of 4,00,000 and declared dividend for 90,000 on 15.09.2024.
Suggested Answer and Working Notes:
Correct Answer: Option (C)
Moon Ltd. is an associate of Sun Ltd.
Topics: AS 21, AS 2, AS 13
Related Questions in this Topic
- Rose Ltd. holds 80% share in Marigold Ltd., its subsidiary. Share capital of Marigold Ltd. is ₹25,00,000 and reserves be...
- Star Ltd. and its subsidiary Moon Ltd. Give the following information as on 31st March, 2026: Star Ltd. (₹) Moon ...
- SBHA Ltd deals in business of manufacturing, purchase and sale of rice. The company has around 56 acres of land as part ...
- Glamour Ltd. and its subsidiary Fashion Ltd. has provided you the following information for the year ended 31st March, 2...
- How the loss due to fraud by cashier will be recognized in the books of Unicorn Limited?