Question

Where are the entries made to record noncontrolling interest in a subsidiary ? a.On a consolidation...

Where are the entries made to record noncontrolling interest in a subsidiary ?

a.On a consolidation worksheet

b.In the subsidiary’s journal and ledger

c.In the parent’s journal and ledger

d.All of the above

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Answer #1

Answer: a.On a consolidation worksheet

Explanation:

a. Consolidated work sheet to be made by a parent company. This work sheet consolidate the parent company's books and Subsidiary company's books. As a part of consolidation Non-Controlling interest is separately shown in the Consolidated work sheet for minorities share. So, Non-controlling interest entries are made on Consolidated work sheet. Thus, option-a is correct.

b. Non-controlling interest entries are not made In the subsidiary’s journal and ledger. So, option-b is incorrect.

c. Non-controlling interest entries are made on Consolidated worksheet that prepared by the parent company. So, option-c is incorrect.

d. Only option-a is correct. So, all the above is incorrect. therefore option-d is also incorrect.

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