[nobrains77]

AccountingCalcQuestion.pdf

Its about consolidated accounts for Company with subsidiary and associated. Please help on the solutions. I only need the brief solutions, well formatted complete assignment answer is not required.. handwritten will do..
Thanks.

[rehmanvohra]

I have studied your question. I am afraid it is not possible to give brief answers or even detailed answers until you show your own effort. You can be provided guidance but the topics are quite complex to be answered in this forum.

[nobrains77]

I have studied your question. I am afraid it is not possible to give brief answers or even detailed answers until you show your own effort. You can be provided guidance but the topics are quite complex to be answered in this forum.

Can you help me on the journal entry workings please?
For the first question, first working I have is :
(in million)
Dr Share Capital 150 (75%x200)
Dr Reserves 90 (75%x120)
Dr Freehold land 100 (450-350)
Dr 10% Debentures 24
Cr Investment in S s/b 354

It is not balance.. Can you correct it for me please.. Thanks..

[rehmanvohra]

The balance is goodwill on acquisition. Here is how:

Cost of investment in ordinary shares (354 - 24) 330
Fair Value of net assets acquires
Ordinary shares 200
Retained earnings 120
Revaluation surplus 100
Total equity 420
Group share (75%) 315
Goodwill (330 - 315) = 15

The eliminating journal entry will be:

Debit Ordinary shares 150
Debit Retained earnings 90
Debit Revaluation surplus 75
Debit Goodwill 15
Debit Debentures 24
Credit Investment 354

[nobrains77]

The balance is goodwill on acquisition. Here is how:

Cost of investment in ordinary shares (354 - 24) 330
Fair Value of net assets acquires
Ordinary shares 200
Retained earnings 120
Revaluation surplus 100
Total equity 420
Group share (75%) 315
Goodwill (330 - 315) = 15

The eliminating journal entry will be:

Debit Ordinary shares 150
Debit Retained earnings 90
Debit Revaluation surplus 75
Debit Goodwill 15
Debit Debentures 24
Credit Investment 354

Thank you

[nobrains77]

AccountingCalcQuestion.pdf

Its about consolidated accounts for Company with subsidiary and associated. Please help on the solutions. I only need the brief solutions, well formatted complete assignment answer is not required.. handwritten will do ..
Thanks.

Can somebody help me on the first question 's additional information (iv)?
"During the year, A S/B sold items of inventories at the invoiced value of RM20 million to H Bhd. Rm12.5 m of these goods are still in stock at thend of the year.Side normally charges a mark-up of 25% on cost."

I need the workings for this please.. not fully sure about the question .

[rehmanvohra]

A S/B is an associate and is NOT consolidated. If you have made any attempt please post it.