Prepare the consolidated balance sheet, Cost Accounting

Assignment Help:

H Bhd has a 75% holding in the ordinary shares of S Sdn Bhd and 40% in A Sdn Bhd. Shares in S were acquired  in 2006 when its retained earnings were RM120 million.  The shares in A S/B  were acquired in 2004 when its retained earnings were RM50 million. Below are the balance sheets for the three companies as at 31 December 2009.

1958_Prepare the consolidated balance sheet.png

Additional information:

i)  To reflect the fair value of the subsidiaries' net assets at the acquisition date, the directors of H determined that S's freehold land had a fair value of RM450 million. S has not acquired nor disposed off any land since 2006.

ii)  Investment in S Bhd includes 10% Debentures purchased at par for RM 24 million.

iii)  S Bhd sold a piece of equipment to H Bhd in 2009 for RM20 million and made a profit of RM5 million. The remaining useful life of this plant and equipment at that time was 5 years.

iv)  During the year, A S/B  sold items of  inventories at the invoiced value of RM20 million to H Bhd. RM12.5 million of these goods are still in stock at the end of the year. Side normally charges a mark-up of 25% on cost.

v)  Full provision of depreciation  is provided for in the year of purchase and none in the year of sale.

vi)  Assume that revenue and expenditure accrue evenly throughout the year.

vii)  Ignore taxation.  

Required:

a)  Prepare the consolidated balance sheet as at 31 December 2009.  Show all relevant workings.


Related Discussions:- Prepare the consolidated balance sheet

Example of lifo, Example of LIFO, FIFO and Weighted Average Method Su...

Example of LIFO, FIFO and Weighted Average Method Suppose the following purchases were made in ABC Ltd as like: Date of purchase     Units purchased              Price/uni

Determine the depletion cost per board foot, Conan O'Brien Logging and Lumb...

Conan O'Brien Logging and Lumber Company owns 3,300 acres of timberland on the north side of Mount Leno, which was purchased in 2000 at a cost of $650 per acre. In 2012, O'Brien be

Calculate the variable cost, Workmen shoes accumulated the following produc...

Workmen shoes accumulated the following production and cost data for the past 5 months. i)  Using the high/low method calculate the variable cost per unit and the fixed cos

Prepare a statement of financial balance sheet, The Accountant has also ask...

The Accountant has also asked for you to assist in preparing the statement of financial position (balance sheet) for the Construction in Building partnership for the year ended 30

Factory overhead, what are the examples of factory overhead

what are the examples of factory overhead

Audit plan, 1. You are required to download the latest annual report publis...

1. You are required to download the latest annual report published by one of the following institutions: - Adult Multicultural Education Services - Centre for Adult Education

Budgeted and actual fixed costs per month , Using  the  information below, ...

Using  the  information below, list profit statements  for June and July using  (a) margin costing and (b) absorption costing. A company produces and sells 1 product only which

Determine which project is more lucrative - investment , The Zooline Compan...

The Zooline Company (Pty) Ltd is an American based company that focuses on the LSM 8 -10 markets. They do vehicle interiors, raise or lower suspensions and install top end sound sy

Labour Costs and Overhead Costs, Labour Costs and Overhead costs Labo...

Labour Costs and Overhead costs Labour Costs Labour costs can be indirect or direct labour costs. Direct labour cost refers to wages paid to workers who such are directly

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