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Question

The net assets of the subsidiary are shown in the holding company's Balance Sheet in the place of ______________.

A
Sundry asset
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B
Investments
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C
Loans and Advances
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D
Share capital
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Solution

The correct option is B Investments
The equity shares of subsidiary company which are acquired by the holding company is shown in the asset side of the Balance Sheet of holding company under the head 'Investment' and the same is shown in the liability side of the Balance Sheet of subsidiary company under the head 'Share Capital'.

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