AB Plc. acquired 80% of shares in CD Plc. when the reserves of CD Plc....
80.2K
Verified Solution
Link Copied!
Question
Accounting
AB Plc. acquired 80% of shares in CD Plc. when the reserves of CD Plc. stood at K240,000. During the year ended 30 June 20X7 CD Plc. sold goods to AB Plc for K800,000, at a profit margin of 25%. As at 30 June 20X7 K180,000 of these goods remained unsold in the inventory of AB Plc.
AB Plcs accounts payable include amounts owing to CD Plc of K90, 000. The following shows the summarized Financial Statements of the two entities.
AB Plc CD Plc
K000 K000
Non-current assets 12,000 8,000
Current assets 11,000 9,000
Investments 8,000
31,000 17,000
Share capital 12,800 10,000
Accumulated profit 15,000 2,000
Current liabilities 3,200 5,000
1,000 17,000
REQUIRED:
- Prepare the consolidated balance as at 30th June 20X7.
Get Answers to Unlimited Questions
Join us to gain access to millions of questions and expert answers. Enjoy exclusive benefits tailored just for you!
Membership Benefits:
- Unlimited Question Access with detailed Answers
- Zin AI - 3 Million Words
- 10 Dall-E 3 Images
- 20 Plot Generations
- Conversation with Dialogue Memory
- No Ads, Ever!
- Access to Our Best AI Platform: Flex AI - Your personal assistant for all your inquiries!
Other questions asked by students
StudyZin's Question Purchase
1 Answer
$0.99
(Save $1 )
One time Pay
- No Ads
- Answer to 1 Question
- Get free Zin AI - 50 Thousand Words per Month
Unlimited
$4.99*
(Save $5 )
Billed Monthly
- No Ads
- Answers to Unlimited Questions
- Get free Zin AI - 3 Million Words per Month
*First month only
Free
$0
- Get this answer for free!
- Sign up now to unlock the answer instantly
You can see the logs in the Dashboard.