Logo
Home Study Material Contact Search
AI Chat FREE
  1. business
  2. accounting
  3. on 1 january 2011, ruby limited acquired 60% of th

On 1 January 2011, Ruby Limited acquired 60% of the issued ordinary shares of Emerald...

90.2K

Verified Solution

Question

Accounting

On 1 January 2011, Ruby Limited acquired 60% of the issued ordinary shares of Emerald Limited, for R3000. At that date, the retained earnings of Emerald Limited was R1 200. No further shares were issued by Emerald Limited since acquisition. The trial balances for both companies at 31 December 2014 were as follows: Ruby Limited " E "_ Dr//(Cr)_ Emerald Limited qquadDr//Cr_ Sales (26400) (8600) Dividend income (180) Interest income (1000) Gain on fair value adjustment (OCl) - Investment in subsidiary (note 2) (400) Cost of sales 16000 4550 Administration expenses 800 300 Interest expenses 2500 400 Selling and distribution costs 930 750 Tax expense 1800 1080 Dividend declared 2800 300 Share capital (6000) (1600) Fair value adjustment reserve

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

Biology
1.2K views

How is it that we all have the same genes, yet we can have different genotypes...

Mechanical Engineering
1.2K views

UNIT EIGHT - ANSWER EACH QUESTION 1.  Explain the difference between coating and cladding 2. Describe the two main...

Physics
1.2K views

The mass of proton is 1 0073 u and that of neutron is 1 0087...

Geometry
1.2K views

The table below summarizes the amount of milk consumed by a sample of 33 families...

Algebra
1.2K views

2 Determine whether the following series converge or diverge If it converges find its su...

Accounting
1.2K views

Continuing Problem Chapter 3 - Instruction...

Accounting
1.2K views

Exercise 13-7 (Algo) Sell or Process Further Decisions [LO13-7] Dorsey Company manufactures three products from...

Accounting
1.2K views

What are the three broad restrictions on taxpayer behavior? How do these doctrines affect taxpayer...

Accounting
1.2K views

Frontier Corporation has fixed costs of $202,650 and net operating income of $105,000. What is...

Accounting
1.2K views

NEED ASAP WITH FORMULA! Violet Company has sales of $454,000, net operating income of...

Accounting
1.2K views

The Cheyenne Hotel in Big Sky, Montana, has accumulated records of the total electrical costs...

Accounting
1.2K views

Break-Even Point in Units Amount Descriptions Unit Break-Even P Instr Head-First Company plans to sell...