Prepare the balance sheet, Cost Accounting

Assignment Help:

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.


Related Discussions:- Prepare the balance sheet

Overhead cost analysis and classification, Overhead Cost Analysis and Class...

Overhead Cost Analysis and Classification Overhead costs may be analyzed into a) Which that may be directly identifiable along with a single cost center, as an  example of,

Allocation of joint costs, Allocation of Joint Costs Whereas two or mo...

Allocation of Joint Costs Whereas two or more products of relatively high value emerge simultaneously from a single process, they are named as joint products.  The processes s

Sources and uses of cash, There are different activities undertaken through...

There are different activities undertaken through a business that prove to be either source or use of cash. These can be categorizes under three broad categories that are: investin

Determine equivalent units of the product, Determine Equivalent Units of th...

Determine Equivalent Units of the Product Let assume there are 4,000 units of a product in ending inventory out of that 60 percent are fully complete whereas the remaining are

Calculate the put price, Question: Suppose that the stock now sells at ...

Question: Suppose that the stock now sells at $80, and the price will go up by 5% or down by 5% at the end of first six month (t = ½).  Then, the price will either go up by 10%

Absorption Costing Techniques, If the net income under marginal costing is ...

If the net income under marginal costing is #100,000, calculate absorption costing, if opening and closing inventories are #20,000 and #15,000

Process costing, If question (CA IPCC) is silent which method to follow: av...

If question (CA IPCC) is silent which method to follow: avg cost or fifo or lifo?

Calculate contribution to sales ratio, Q. Calculate contribution to sales r...

Q. Calculate contribution to sales ratio? Contribution per unit= sales price per unit less variable cost per unit Break-even volume = Fixed overhead/Contribution per uni

Average cost, Under the average cost method the average cost of goods held ...

Under the average cost method the average cost of goods held in stock is recalculated after each receipt. An issue after the receipts is made at the recalculated average prices. A

Write Your Message!

Captcha
Free Assignment Quote

Assured A++ Grade

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!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd