Illustration: computation of retained profits acquisition, Financial Accounting

Illustration: Computation of retained profits acquisition

Assume that H Ltd.. Acquired 80% of S Ltd.. On 1st April, 2003. The retained profits of the subsidiary company b/d amounted to £ 120,000 and the c/d amounted to £150,000.

REQ. Compute the retained profits on date of acquisition and the amount to be transferred to the cost of control if the financial year end is 31/12/03

Retained profits for the year:   Bal c/d – Bal b/d
                                          =150,000 – 120,000
                                          =30,000

Pre-acquisition profits: 1st Jan 03 – 31st March 03   = ¼ X30,000 = 7500

Retained profits on acquisition   =  bal b/d  + pre-acquisition
                                                   =  120,000 + 7500
                                                   =   £127,000

  To cost of control
                 = 80% x 127,000
                 = £102,000

Posted Date: 12/12/2012 4:15:15 AM | Location : United States







Related Discussions:- Illustration: computation of retained profits acquisition, Assignment Help, Ask Question on Illustration: computation of retained profits acquisition, Get Answer, Expert's Help, Illustration: computation of retained profits acquisition Discussions

Write discussion on Illustration: computation of retained profits acquisition
Your posts are moderated
Related Questions
The basic EOQ model is depends on the subsequent assumption: 1) The forecast usage or demand for a specified period, usually one year, is identified 2) The usage/demand is ev


Read Appendix B, "Sample Brief Memorandum," that starts on page 193 of the textbook. In 2-3 pages (12 point font, double spaced), critique the memorandum based on what we've learne

Cost of capital calculation Cost of equity (Ke) Using the dividend valuation model, Ke=D 1 /P 0 + g Pretentious that dividend growth over the last five years is a good

When the stock market is going up over a long period of time, investors can become complacent about the risks of being a stockholder. After the significant decline of the stock mar

1. This assignment is to be submitted as an individual assignment.  2. Marks will be deducted for poor quality presentation. For guidance on the requirements for the presentatio

Individual taxpayers who don't itemize their deductions are entitled to a standard deduction amount by which to decrease ADJUSTED GROSS INCOME in arriving at taxable income. Amount

how do i find info about google inc

Revaluations Partners rarely revalue their assets and any revaluations may be carried out when a new partner is being admitted or an old partner is retiring.   To facilitate th

Q. What do you understand by Exempt Organization? Exempt Organization - Organization that is normally exempt from paying federal income tax. Exempt organizations comprise relig