{"id":51888,"date":"2024-04-15T23:31:19","date_gmt":"2024-04-15T23:31:19","guid":{"rendered":"https:\/\/exam.pscnotes.com\/mcq\/?p=51888"},"modified":"2024-04-15T23:31:19","modified_gmt":"2024-04-15T23:31:19","slug":"x-ltd-purchased-70-of-the-shares-of-y-ltd-at-a-price-of-rs-100000-the-share-capital-of-y-ltd-was-rs-70000-and-its-accumulated-profits-amounted-to-rs-90000-what-would-be-the-amount-of-minorit","status":"publish","type":"post","link":"https:\/\/exam.pscnotes.com\/mcq\/x-ltd-purchased-70-of-the-shares-of-y-ltd-at-a-price-of-rs-100000-the-share-capital-of-y-ltd-was-rs-70000-and-its-accumulated-profits-amounted-to-rs-90000-what-would-be-the-amount-of-minorit\/","title":{"rendered":"X Ltd purchased 70% of the shares of Y Ltd at a price of Rs. 1,00,000. The share capital of Y Ltd was Rs. 70,000, and its accumulated profits amounted to Rs. 90,000. What would be the amount of minority interest in the consolidated balance sheet?"},"content":{"rendered":"<p>[amp_mcq option1=&#8221;Rs. 25,000&#8243; option2=&#8221;Rs. 70,000&#8243; option3=&#8221;Rs. 1,00,000&#8243; option4=&#8221;Rs. 40,000&#8243; correct=&#8221;option1&#8243;]<!--more--><\/p>\n<p>The correct answer is A. Rs. 25,000.<\/p>\n<p>Minority interest is the portion of the equity of a subsidiary that is not owned by the parent company. In this case, X Ltd owns 70% of Y Ltd, so the minority interest is 30%. The minority interest is calculated as follows:<\/p>\n<p>Minority interest = Share capital of subsidiary * (1 &#8211; Ownership percentage)<\/p>\n<p>= Rs. 70,000 * (1 &#8211; 0.7)<\/p>\n<p>= Rs. 25,000<\/p>\n<p>Option B is incorrect because it is the share capital of Y Ltd. Option C is incorrect because it is the purchase price of Y Ltd. Option D is incorrect because it is the total equity of Y Ltd.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>[amp_mcq option1=&#8221;Rs. 25,000&#8243; option2=&#8221;Rs. 70,000&#8243; option3=&#8221;Rs. 1,00,000&#8243; option4=&#8221;Rs. 40,000&#8243; correct=&#8221;option1&#8243;]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[85],"tags":[],"class_list":["post-51888","post","type-post","status-publish","format-standard","hentry","category-accounting","no-featured-image-padding"],"yoast_head":"<!-- This site is optimized with the Yoast SEO Premium plugin v22.2 (Yoast SEO v23.3) - https:\/\/yoast.com\/wordpress\/plugins\/seo\/ -->\n<title>X Ltd purchased 70% of the shares of Y Ltd at a price of Rs. 1,00,000. The share capital of Y Ltd was Rs. 70,000, and its accumulated profits amounted to Rs. 90,000. What would be the amount of minority interest in the consolidated balance sheet?<\/title>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/exam.pscnotes.com\/mcq\/x-ltd-purchased-70-of-the-shares-of-y-ltd-at-a-price-of-rs-100000-the-share-capital-of-y-ltd-was-rs-70000-and-its-accumulated-profits-amounted-to-rs-90000-what-would-be-the-amount-of-minorit\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"X Ltd purchased 70% of the shares of Y Ltd at a price of Rs. 1,00,000. The share capital of Y Ltd was Rs. 70,000, and its accumulated profits amounted to Rs. 90,000. What would be the amount of minority interest in the consolidated balance sheet?\" \/>\n<meta property=\"og:description\" content=\"[amp_mcq option1=&#8221;Rs. 25,000&#8243; option2=&#8221;Rs. 70,000&#8243; option3=&#8221;Rs. 1,00,000&#8243; option4=&#8221;Rs. 40,000&#8243; correct=&#8221;option1&#8243;]\" \/>\n<meta property=\"og:url\" content=\"https:\/\/exam.pscnotes.com\/mcq\/x-ltd-purchased-70-of-the-shares-of-y-ltd-at-a-price-of-rs-100000-the-share-capital-of-y-ltd-was-rs-70000-and-its-accumulated-profits-amounted-to-rs-90000-what-would-be-the-amount-of-minorit\/\" \/>\n<meta property=\"og:site_name\" content=\"MCQ and Quiz for Exams\" \/>\n<meta property=\"article:published_time\" content=\"2024-04-15T23:31:19+00:00\" \/>\n<meta name=\"author\" content=\"rawan239\" \/>\n<meta name=\"twitter:card\" content=\"summary_large_image\" \/>\n<meta name=\"twitter:label1\" content=\"Written by\" \/>\n\t<meta name=\"twitter:data1\" content=\"rawan239\" \/>\n\t<meta name=\"twitter:label2\" content=\"Est. reading time\" \/>\n\t<meta name=\"twitter:data2\" content=\"1 minute\" \/>\n<!-- \/ Yoast SEO Premium plugin. -->","yoast_head_json":{"title":"X Ltd purchased 70% of the shares of Y Ltd at a price of Rs. 1,00,000. The share capital of Y Ltd was Rs. 70,000, and its accumulated profits amounted to Rs. 90,000. What would be the amount of minority interest in the consolidated balance sheet?","robots":{"index":"index","follow":"follow","max-snippet":"max-snippet:-1","max-image-preview":"max-image-preview:large","max-video-preview":"max-video-preview:-1"},"canonical":"https:\/\/exam.pscnotes.com\/mcq\/x-ltd-purchased-70-of-the-shares-of-y-ltd-at-a-price-of-rs-100000-the-share-capital-of-y-ltd-was-rs-70000-and-its-accumulated-profits-amounted-to-rs-90000-what-would-be-the-amount-of-minorit\/","og_locale":"en_US","og_type":"article","og_title":"X Ltd purchased 70% of the shares of Y Ltd at a price of Rs. 1,00,000. The share capital of Y Ltd was Rs. 70,000, and its accumulated profits amounted to Rs. 90,000. What would be the amount of minority interest in the consolidated balance sheet?","og_description":"[amp_mcq option1=&#8221;Rs. 25,000&#8243; option2=&#8221;Rs. 70,000&#8243; option3=&#8221;Rs. 1,00,000&#8243; option4=&#8221;Rs. 40,000&#8243; correct=&#8221;option1&#8243;]","og_url":"https:\/\/exam.pscnotes.com\/mcq\/x-ltd-purchased-70-of-the-shares-of-y-ltd-at-a-price-of-rs-100000-the-share-capital-of-y-ltd-was-rs-70000-and-its-accumulated-profits-amounted-to-rs-90000-what-would-be-the-amount-of-minorit\/","og_site_name":"MCQ and Quiz for Exams","article_published_time":"2024-04-15T23:31:19+00:00","author":"rawan239","twitter_card":"summary_large_image","twitter_misc":{"Written by":"rawan239","Est. reading time":"1 minute"},"schema":{"@context":"https:\/\/schema.org","@graph":[{"@type":"WebPage","@id":"https:\/\/exam.pscnotes.com\/mcq\/x-ltd-purchased-70-of-the-shares-of-y-ltd-at-a-price-of-rs-100000-the-share-capital-of-y-ltd-was-rs-70000-and-its-accumulated-profits-amounted-to-rs-90000-what-would-be-the-amount-of-minorit\/","url":"https:\/\/exam.pscnotes.com\/mcq\/x-ltd-purchased-70-of-the-shares-of-y-ltd-at-a-price-of-rs-100000-the-share-capital-of-y-ltd-was-rs-70000-and-its-accumulated-profits-amounted-to-rs-90000-what-would-be-the-amount-of-minorit\/","name":"X Ltd purchased 70% of the shares of Y Ltd at a price of Rs. 1,00,000. 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