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    Question

    Parent Ltd. owns 80% of Subsidiary Ltd. The subsidiary

    reports a profit of ₹10 lakh during the year. How much of this profit should be added to consolidated net income?
    A ₹10 lakh Correct Answer Incorrect Answer
    B ₹8 lakh Correct Answer Incorrect Answer
    C ₹2 lakh Correct Answer Incorrect Answer
    D ₹0 lakh Correct Answer Incorrect Answer

    Solution

    80% of profit (₹8 lakh) is attributed to holding company; 20% (₹2 lakh) goes to non-controlling interest (minority interest). Only the parent's share is included in consolidated profit.

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