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Forums › Ask ACCA Tutor Forums › Ask the Tutor ACCA FR Exams › Dividend examples
In the parent record according to the note,
Dr Receivable
Cr RE
In the sub record,
Dr RE
Cr dividend payable
But on the question , my biggest challenge is the 9 figure of the payable that was added to parent Current asset , as part of the adjustment and removed from the 10 from the payable of the subsidiary.
Was the payable of 9 on the parent entity or another 9 from some where?
The 9 is the dividend that the parent is to receive from the subsidiary
The subsidiary has declared a dividend of 10 and the parent owns 90% of the subsidiary’s shares
So now we are faced with the calculation “What is 90% of 10?”
And there you have it!
OK?