Prepare the balance sheet, Cost Accounting

High Bhd acquired shares in two other companies as follows:

1506_Prepare the consolidated balance sheet1.png

1710_Prepare the consolidated balance sheet2.png

Additional information:

i) Goodwill on acquisition of Swift was impaired by RM80,000 as at 31 October 2009 and is to be written off as an expense.

ii) On 1 October 2009 Swift sold goods to High at a margin of 20%. These goods had a sales value of RM200,000. As at 31 October 2009, High still held RM140,000 of these goods in stocks.

iii) High has not yet accounted for any dividends receivable from Swift or Arthur. The dividends from Arthur all relate to the post-acquisition period.

iv) High requires Arthur to bring its depreciation methods in line with the group accounting policies. The directors have estimated that this would reduce the profit of Arthur for the year ended 31 October 2009 by RM100,000. Ignore any effect on the taxation charge.

v) The retained profit brought forward at 1 November 2008 for the three companies was:

Required:

a) Calculate the goodwill on acquisition of Swift and Arthur.

b) Prepare the Consolidated income statement of the group for the year ended 31 October 2009.

c) Prepare the consolidated statement of reserves of the group for the year ended 31 October 2009.

Posted Date: 3/8/2013 12:56:49 AM | Location : United States







Related Discussions:- Prepare the balance sheet, Assignment Help, Ask Question on Prepare the balance sheet, Get Answer, Expert's Help, Prepare the balance sheet Discussions

Write discussion on Prepare the balance sheet
Your posts are moderated
Related Questions

Stores layout and location - Material Handling The layout of stores must ensure as a) For movement of material, ease of access out and in of stores b) The issue of peris

Hello, I''m currently doing a research on a company and planning an Activity Based Costing system since the company is using Traditional Costing system to allocate the overhead to

some clarificationon how to compute closing stock and openning stock using marginal costing technique and absorption.

First In First Out or FIFO Method - Work in Progress This method considers merely those costs incurred throughout the recent period.  Equivalent units are calculated given a

When firms enter into loan agreements with their bank it is very common for the agreement to have a restriction on the minimum current ratio the firm has to maintain. So, it is imp

Early customers at Graffiti Week balk at the price for Moondoggie Reserve. The marketing department at DFW, Jolene, conducts some research that suggests Stanislaus county residents


Purpose of Cost Accounting Information Cost accounting is employed for a number of reasons, some of that are briefly described in the given points as: a) Accounting for co

A statement of changes in working capital assists us in locating where such changes took place. In the first example we try to demonstrate the increase or decrease in particular it