Reference no: EM132941287

Question - Dumbu Ltd acquired all the Share capital of Gaweses Ltd 5 years ago when Gaweses Ltd's reserve were N$25,000.Goodwill has suffered an impairment of N$5,000. Balance Sheet as at 31 December 2006. Dumbu Ltd Gawaeses Ltd N$ N$ Fixed Assets: Plant and Machinery 47,000 35,000 Investments in Gaweses 85,000 - Current Assets: Stock 40,000 35,000 Trade Debtors 30,000 18,000 Bank 25,000 10,000 Total Assets 227,000 98,000 Capital and Reserves: Ordinary Share Capital 100,000 50,000 Retained Profit 75,000 35,000 175,000 85,000 Current Liabilities: Trade Creditors 52,000 13,000 Total Equity and Liabilities 227,000 98,000

Required -

(a) Calculate Goodwill.

(b) Calculate Retained Profit.

(c) Prepare Consolidated Balance Sheet of Dumbu as at 31 December 2006.