On April 1, 2010, Bush Limited (BL) purchased 40% equity shares of Huss Limited (HL) at a

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On April 1, 2010, Bush Limited (BL) purchased 40% equity shares of Huss Limited (HL) at a cost of ₹2,40,000. The equity of HL on this date comprised

(a) Equity share capital ₹3,00,000,

(b) Securities premium ₹2,00,000,

(c) Reserve and surplus ₹1,00,000.

During the year 2010–11, GHL earned a net profit of ₹1,00,000 out of which 60% was distributed as dividend among equity shareholders. Show how BL should account for its investment in HL.

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Financial Accounting

ISBN: 9780071078023

1st Edition

Authors: Dhanesh K. Khatri

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Question Posted: Dec 18, 2023 11:14 AM

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On April 1, 2010, Bush Limited (BL) purchased 40% equity shares of Huss Limited (HL) at a

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To account for Bush Limiteds BL investment in Huss Limited HL we need to consider the equity method ...View the full answer

Financial Accounting

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