When a parent recognises a pre-acquisition dividend that is declared by a wholly-owned subsidiary it makes the following entry in its accounting records:
This is explained more in Chapter 26.
A)
$\begin{array} { l l l }
\text { DR } & & \text { Dividend receivable } \
& \mathrm { CR } & \text { Dividend income }
\end{array}$
B)
DR$\quad$ Dividend income
CR $\quad$Dividend receivable
C)
DR$\quad$ Dividend receivable
$\quad$CR $\quad$ Shares in subsidiary
D)
$\begin{array} { l l l }
\text { DR } & \text { Shares in subsidiary } \
\mathrm { CR } & \text { Dividend income. }
\end{array}$

Question

When a parent recognises a pre-acquisition dividend that is declared by a wholly-owned subsidiary it makes the following entry in its accounting records:
This is explained more in Chapter 26.
A)
$\begin{array} { l l l } 
\text { DR } & & \text { Dividend receivable } \
& \mathrm { CR } & \text { Dividend income }
\end{array}$
B) 
DR$\quad$ Dividend income 
CR $\quad$Dividend receivable
C) 
DR$\quad$ Dividend receivable 
$\quad$CR $\quad$ Shares in subsidiary
D)
$\begin{array} { l l l } 
\text { DR } &  \text { Shares in subsidiary } \
 \mathrm { CR } & \text { Dividend income. }
\end{array}$

Quizplus · Accepted Answer

When a parent recognises a pre-acquisition dividend that is declared by a wholly-owned subsidiary, it makes the following entry in its accounting records:DR Dividend receivable CR Dividend income

When a Parent Recognises a Pre-Acquisition Dividend That Is Declared DR Dividend receivable CR Dividend income \begin{array} { l l l } \text { DR } & & \text { Dividend receivable } \\& \mathrm { CR } & \text { Dividend income }\end{array} DR ​CR​ Dividend receivable Dividend income ​

When a Parent Recognises a Pre-Acquisition Dividend That Is Declared $\begin{array} { l l l } \text { DR } & & \text { Dividend receivable } \\& \mathrm { CR } & \text { Dividend income }\end{array}$