Mathematics · Corporate Financial Accounting
Zenith Infrastructure Group is compiling its consolidated financial accounts. The parent company, Zenith Ltd, owns a 90% stake in its subsidiary Zenith Power. During the fiscal year, Zenith Power sold specialized turbines to another group company, Zenith Roads, for 10,00,00,000 rupees. The sale was executed at a profit margin of 20% on the selling price. At the end of the financial year, Zenith Roads had installed 50% of these turbines, while the remaining 50% remained unsold in its inventory. What is the total value of unrealized profit that needs to be eliminated during the consolidation of the group accounts?
- 150,00,000 rupees
- 280,00,000 rupees
- 31,00,00,000 rupees✓
- 42,00,00,000 rupees
Correct answer
1,00,00,000 rupees
Download Single Question PDF
Save this question and verified answer as a clean study sheet with live clickable link.
Share with Friends & Study Groups
Challenge your peer aspirants on WhatsApp or Telegram to solve this question!
Preparing for Mathematics?
Practice full-length mock tests with real exam timers, instant score analysis, and all-India ranking.
Want more practice questions on Corporate Financial Accounting?
Solve complete topic-wise tests with detailed solutions on GkGet.
Related Practice Questions
Recommended practice questions in Mathematics · Corporate Financial Accounting