In Bell Group's consolidation worksheet, the opening balance of retained earnings under 'Group' column shows a balance of $70 000. If there is a debit entry of $16 000 in the NCI column, the opening balance of retained earnings under 'Parent' column would be:
A) $54 000.
B) $70 000.
C) $86 000.
D) $16 000.

Question

Quizplus · Accepted Answer

The opening balance of retained earnings for parent company is calculated as the opening balance of retained earnings under group column minus the debit entry in the NCI column. Therefore, the opening balance of retained earnings for parent company would be $54 000 ($70 000 - $16 000).

In Bell Group's Consolidation Worksheet, the Opening Balance of Retained