Sun Limited has acquired 40% share in Moon Ltd. for 5,00,000 on 01.07.2024. Moon Ltd. is holding 40% stake in Star Limited. Now, Sun limited can…
CA Intermediate · Advanced Accounting · MTP · January 2026
Sun Limited has acquired 40% share in Moon Ltd. for 5,00,000 on 01.07.2024. 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 2023-24 on 15.09.2024. For the year 2024-25, Moon Ltd. earned profit of 4,00,000 and declared dividend for 90,000 on 15.09.2025. Answer the following questions based on above:
Suggested Answer and Working Notes:
Correct Answer: Option (C)
Moon Ltd. is an associate of Sun Ltd.
Topics: AS 21, AS 2, AS 13
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