During the previous year, a partly-owned subsidiary has made a transfer from retained earnings to a general reserve. Which of the following lines would appear in the NCI journal relating to the current year transfer?
A) Cr NCI.
B) Dr Retained earnings.
C) Cr General reserve.
D) Cr Transfer to general reserve.

Question

Quizplus · Accepted Answer

The transfer from retained earnings to a general reserve by a partly-owned subsidiary would decrease the non-controlling interest's share of retained earnings, so the NCI account would be credited.

During the Previous Year, a Partly-Owned Subsidiary Has Made a Transfer