Chapter 3 The statements of financial position of H Ltd and S Ltd at 31 December 20*2 are as follows: H Ltd S Ltd $00 $000 $00 $000 Non-current assets 2,300 3,000 3,000 Shares in S Ltd Current assets Inventory Trade receivables 1,000 1,200 500 600 Current account with H Ltd 180 Cash 200 1,700 120 2,100 Current liabilities Trade payables (630) (100) (300) 670 6.670 5,000 (250) Current account with S Ltd Dividend payable (300) 1,550 Total net assets 3,850 2,500 Ordinary share capital Retained earnings Total equity 1,670 6,670 1,350 3,850 The following information is also available: (a) H Ltd acquired 80% of the shares of S Ltd on 1 Jan. 20*2 when the retained earnings of S Ltd were $1,000,000. (b) On 30 Dec. 20*2, H Ltd sent a cheque to S Ltd for $50,000. This was not received by S Ltd until 2 Jan. 20*3. (c) On 31 Dec. 20*2, there were goods in transit sent by S Ltd to H Ltd valued at $30,000. (d) H Ltd has not incorporated any entries relating to the dividend receivable from S Ltd for 20*2. (e) 10% of the goodwill is to be written off as an impairment loss. Required: Prepare a consolidated statement of financial position for H Ltd at 31 Dec. 20*2.
Chapter 3 The statements of financial position of H Ltd and S Ltd at 31 December 20*2 are as follows: H Ltd S Ltd $00 $000 $00 $000 Non-current assets 2,300 3,000 3,000 Shares in S Ltd Current assets Inventory Trade receivables 1,000 1,200 500 600 Current account with H Ltd 180 Cash 200 1,700 120 2,100 Current liabilities Trade payables (630) (100) (300) 670 6.670 5,000 (250) Current account with S Ltd Dividend payable (300) 1,550 Total net assets 3,850 2,500 Ordinary share capital Retained earnings Total equity 1,670 6,670 1,350 3,850 The following information is also available: (a) H Ltd acquired 80% of the shares of S Ltd on 1 Jan. 20*2 when the retained earnings of S Ltd were $1,000,000. (b) On 30 Dec. 20*2, H Ltd sent a cheque to S Ltd for $50,000. This was not received by S Ltd until 2 Jan. 20*3. (c) On 31 Dec. 20*2, there were goods in transit sent by S Ltd to H Ltd valued at $30,000. (d) H Ltd has not incorporated any entries relating to the dividend receivable from S Ltd for 20*2. (e) 10% of the goodwill is to be written off as an impairment loss. Required: Prepare a consolidated statement of financial position for H Ltd at 31 Dec. 20*2.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Transcribed Image Text:Chapter 3
The statements of financial position of H Ltd and S Ltd at 31 December 20*2 are as
follows:
S Ltd
H Ltd
$00
$00
$000
$00
Non-current assets
2,300
3,000
3,000
Shares in S Ltd
Current assets
Inventory
Trade receivables
1,000
1,200
500
600
Current account with H Ltd
180
Cash
200
1,700
120
2,100
Current liabilities
Trade payables
(630)
(100)
_(300)
(250)
Current account with S Ltd
Dividend payable
(300)
670
1,550
3,850
2,500
1,350
3,850
Total net assets
6,670
5,000
Ordinary share capital
Retained earnings
Total equity
1,670
6.670
The following information is also available:
(a) H Ltd acquired 80% of the shares of S Ltd on 1 Jan. 20*2 when the retained
earnings of S Ltd were $1,000,000.
(b) On 30 Dec. 20*2, H Ltd sent a cheque to S Ltd for $50,000. This was not received
by S Ltd until 2 Jan. 20*3.
(c) On 31 Dec. 20*2, there were goods in transit sent by S Ltd to H Ltd valued at
$30,000.
(d) H Ltd has not incorporated any entries relating to the dividend receivable from S
Ltd for 20*2.
(e) 10% of the goodwill is to be written off as an impairment loss.
Required:
Prepare a consolidated statement of financial position for H Ltd at 31 Dec. 20*2.
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