Logo
Home Study Material Contact Search
AI Chat FREE
  1. business
  2. accounting
  3. during august 20x5, lazada ltd acquired 75% of the

During August 20X5, Lazada Ltd acquired 75% of the issued capital of Zalora Ltd in...

90.2K

Verified Solution

Question

Accounting

During August 20X5, Lazada Ltd acquired 75% of the issued capital of Zalora Ltd in exchange for $8,500,000. In October 20X5, Lazada Ltd extended a one-year loan, totalling $1,200,000, to Zalora Ltd with the rate of 6% per annum, with interest payable every month. Assume both companies have financial year end in December, with regards to the loan, the entry required on consolidation is: a. Dr. Interest Revenue $18 000 Cr. Interest Expense $18 000 b. Dr. Interest Revenue $13 500 Cr. Interest Expense $13 500 c. Dr. Loan receivable $1 200 000 Cr. Loan payable $1 200 000 d. No entries required.image

During August 20X5, Lazada Ltd acquired 75% of the issued capital of Zalora Ltd in exchange for $8,500,000. In October 20X5, Lazada Ltd extended a one-year loan, totalling $1,200,000, to Zalora Ltd with the rate of 6% per annum, with interest payable every month. Assume both companies have financial year end in December, with regards to the loan, the entry required on consolidation is: a. Dr. Interest Revenue $18000 Cr. Interest Expense $18000 b. Dr. Interest Revenue $13500 Cr. Interest Expense $13500 c. Dr. Loan receivable $1200000 Cr. Loan payable $1200000 d. No entries required

Answer & Explanation Solved by verified expert
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!
Become a Member

Other questions asked by students