Already have an account? Get multiple benefits of using own account!
Login in your account..!
Remember me
Don't have an account? Create your account in less than a minutes,
Forgot password? how can I recover my password now!
Enter right registered email to receive password!
Illustration of consolidated balance sheet
H Ltd owned S Ltd since the date of incorporation of S Ltd. The balance sheets of the two companies as at 31 December 20X2 is as follows.
H Ltd
S Ltd
Non Current assets
£
Tangible - PPE
35,000.00
45,000.00
Investment in S Ltd
80,000.00
Current assets
Inventory
16,000.00
12,000.00
Accounts receivables
8,000.00
9,000.00
Cash at bank
1,000.00
25,000.00
-
21,000.00
TOTAL ASSETS
105,000.00
66,000.00
Share Capital
70,000.00
40,000.00
Retained profits
11,000.00
19,000.00
81,000.00
59,000.00
Non Current Liabilities
10% Loan Stock
10,000.00
Current Liabilities
Bank Overdraft
3,000.00
Accounts Payable
14,000.00
4,000.00
7,000.00
Required;
Prepare the consolidated balance sheet of H Ltd and S Ltd as at 31 December 20X2
Solution
NON-CURRENT ASSETS
Property, plant and equipment (35+45)
80,000
Goodwill
5,000
85,000
Inventory (16+12)
28,000
Accounts receivable(8+9)
17,000
1,000
46,000
131,000
Ordinary share capital
70,000
30,000
100,000
10% Loan stock
10,000
Bank overdraft
3,000
Accounts payables
18,000
21,000
TOTAL EQUITY AND LIABILITIES
WORKINGS
NOTE:
H owns S Ltd. since date of incorporation thus:
It owns 100% of S Ltd.. (No minority interest)
There are no pre-acquisition profits (all the profits of share capital are distributable)
Investment in S
45,000
OSC (40,000 x 100%)
40,000
_____
Goodwill (balance figure)
Balance c/d
H Ltd..
11,000
S Ltd..
19,000
Q. Explain about Mutual Fund? Mutual Fund - Investment Companythat usually offers its shares to general public and invests the proceeds in a diversified portfolio of SECURITIES
You are considering whether or not to go to graduate school. Well... there are many things to consider, of course, such as the type of job you would thus get, the opportunity to li
Application of discharge Application may be made at any time after adjudication, but cannot be heard until the conclusion of the public examination. Notice of the hearing must
Calculate the market value of Renowned Cola''s debt at year-end 2005. What is the book value of debt? Why do usually use market or book values for debt? Explain.
Q. What do you understand by Tax Court? Tax Court - U.S. Tax Court is a legislative court functioning to adjudicate controversies between taxpayers and IRS arising out of defic
Activity-Based Costing (ABC) An accounting method that assigns identifiable costs and allocates common costs to definite product lines or business fragments Also known as pro
Definition: A partnership is defined as “the relationship that subsists between two or more persons carrying on a business in common with a view to making a profit.” (Partnersh
Variation of securities It would seem logical to carry out a strict apportionment between income and capital every time investments are bought or sold. If this were done, it wo
Defunct Companies A company may be dissolved under s.338 without winding up if the registrar has reasonable cause to believe it is defunct: The procedure is: a. Registrar writ
Lenders' evaluation: Current Assets to Current Liabilities, Quick Assets that is current assets minus inventories to Current Liabilities, Long term Debt to Net Assets, to
Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!
whatsapp: +1-415-670-9521
Phone: +1-415-670-9521
Email: [email protected]
All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd