From the following data, determine Minority Interest on the date of acquisition and on the date of consolidation in each case: Case Subsidiary…

CA Intermediate · Advanced Accounting · MTP · September 2025
From the following data, determine Minority Interest on the date of acquisition and on the date of consolidation in each case: Case Subsidiary Company % of Share Owned Cost Date of Acquisition 01-01-2024 Consolidation date 31-12-2024 Share Capital ₹ Profit and Loss A/c ₹ Share Capital ₹ Profit and Loss A/c ₹ Case-i X 85% 1,85,000 1,35,000 60,000 1,35,000 70,000 Case-ii Y 70% 1,60,000 1,25,000 45,000 1,25,000 5,000 Case-iii Z 65% 83,000 25,000 5,000 25,000 5,000 Case-iv M 90% 60,000 45,000 20,000 45,000 40,000 Case-v N 100% 85,000 25,000 25,000 25,000 50,000

Suggested Answer and Working Notes:

Minority Interest = Equity attributable to minorities Equity is the residual interest in the assets of an enterprise after deducting all its liabilities i.e. in this case, it should be equal to Share Capital + Profit & Loss A/c A = Share capital on 1.1.2024 B = Profit & loss account balance on 1.1.2024 C = Share capital on 31.12.2024 D = Profit & loss account balance on 31.12.2024 Minority % Shares Owned [E] Minority interest as at the date of acquisition [E] x [A + B] ₹ Minority interest as at the date of consolidation [E] X [C + D] ₹ Case i [100-85] 15% 29,250 30,750 Case ii [100-70] 30% 51,000 39,000 Case iii [100-65] 35% 10,500 10,500 Case iv [100-90] 10% 6,500 8,500 Case v [100-100] NIL NIL NIL

Topics: AS 21

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