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Total comprehensive income attributable to 0 77,518 77,518
parent (W.N.2)
Gain on Bargain purchase 0 0
Balance at the end of reporting period 2,03,502 9,36,000 11,39,502

Working Notes:
1. Adjustments of Fair Value
The Plant & Machinery of SR Ltd. would stand in the books at Rs 4,44,600 on 1 October 2019,
considering only six months‖ depreciation on Rs 4,21,200/90% = 4,68,000;
total depreciation being Rs 4,68,000 ×10% × 6/12 = 23,400.
Being the fair value of the asset Rs 6,24,000 there is an appreciation to the extent of Rs 1,79,400 (Rs

6,24,000 – Rs 4,44,600).
Acquisition date profits of SR Ltd. Rs
Reserves on 1.4.2019 3,12,000
Profit& Loss Account Balance on 1.4.2019 93,600
Profit for 2019-2020: Total [Rs 2,55,800 - (93,600 - 74,880) ]x 6/12
i.e. Rs 1,18,540 up to 1.10.2019 1,18,540
Total Appreciation 5,07,000*
Total 10,31,140
Holding Co. Share (70%) 7,21,798
NCI 3,09,342

*Appreciation = Land & Building Rs 3,12,000 + Inventories Rs 46,800+ Plant & Machinery Rs 1,79,400 –Trade
Payables (Rs 31,200) = Rs 5,07,000

2. Post-acquisition profits of SR Ltd. Rs
Profit after 1.10.2019 [2,55,800 - (93,600-74,880)] x 6/12 1,18,540
Less: 10% depreciation on Rs6,24,000 for 6 months less depreciation already charged
for 2nd half of 2019-2020 on Rs4,68,800 (ie 31,200-23,400) (7,800)
Total 1,10,740
Share of holding Co. (70%) Share of NCI 77,518
(30%) 33,222

3. Non-controlling Interest
Par value of 1872 shares 1,87,200
Add:30% Acquisition date profits [(10,31,140 – 74,880) x 30%] 2,86,878
30% Post-acquisition profits [W.N.2] 33,222
5,07,300

4. Goodwill Rs
Amount paid for 4,368 shares 12,48,000
Less : Par value of shares 4,36,800
Acquisition date profits-share of PN Ltd. (W.N.1) 7,21,798 (11,58,598)
Goodwill 89,402

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