Parsley Limited owns 90% of the share capital of Sage Limited. Sage Limited paid a dividend of $60 000 during the financial period. The NCI adjustment entries in the consolidation worksheet for the dividend include:
A) DR NCI $6 000.
B) DR Dividend revenue $6 000.
C) DR Dividend paid $6 000.
D) DR Dividend payable $6 000.

Question

Quizplus · Accepted Answer

The NCI adjustment entries in the consolidation worksheet for dividends paid by the subsidiary include a debit to NCI for their share of the dividend. In this case, since Parsley Limited owns 90% of Sage Limited, the NCI adjustment entry would be to debit NCI for $6,000 (10% of the $60,000 dividend).

Parsley Limited Owns 90% of the Share Capital of Sage