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
a) The actual risk-free rate is 3%, and inflation is usual to be 2% for the next 2 years. A 2-year Treasury security yields 6.7%. What is the maturity risk premium for the 2-year s
Q. Define the 401 Plan? 401(k) Plan - EMPLOYEE BENEFIT PLAN authorized by INTERNAL REVENUE CODE section 401(k), whereby an employer establishes an account for every participati
Describe:-1. Compare the American Institute of CPAs' (AICPA) Statements on Tax Standards (SSTS) and the Treasury Department Circular 230 rules to practice before the Internal Reven
how to prepare a overhead analaysis
In the NPV analysis, sunk cost is not relevant whereas opportunity cost is for project evaluation. Requirements: Describe and justify the above statement about sunk cost an
State the term Reliability- Accounting Information Accounting must be free from significant error or bias. It must be capable of being relied upon by managers to represent
Thatcher Corporation's bonds will mature in 12 years. The bonds have a face value of $1,000 and an 11.5% coupon rate, paid semi-yearly. The price of the bonds is $1,050. The bonds
Acquisition during the financial period The holding company may acquire the subsidiary company partway through the financial period such that as at the balance sheet date, the
Q. What are Junk Bonds? Junk Bonds - DEBT SECURITIES issued by companies with higher than normal credit risk. Considered ‘non-investment grade' bonds, these SECURITIES ordinari
State the Nature of the reports produced - Financial accounting Financial accounting reports tend to be general-purpose which is, they contain financial information which would
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: +91-977-207-8620
Phone: +91-977-207-8620
Email: [email protected]
All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd