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Chapter 20
Example 15.2
Journal entry to record purchase of additional shares:
Dr NCI (15/20 × 360,000 (W)) $270,000
Dr Equity – other components (bal fig) $15,000
Cr Cash $285,000
Working
At the date of the purchase of additional shares, the NCI's share of equity is:
$
NCI holding at acquisition at fair value 300,000
NCI% × post-acquisition reserves (20% × (1,200,000 – 900,000)) 60,000
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360,000
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