Hlayisani Ltd acquired 60% of the voting shares of the Mashele Ltd on 31 January 2014 for R65 000 when theitems of equity in the books of Mashele Ltd on that date were retained income of R45 000, revaluation surplusof R10 000 and share capital of R58 000. Calculate the amount of goodwill/ (gain on bargain purchase) realizedby Hlayisani Ltd on 31 January 2014.7300--99-10

Goodwill represents the brand value of the company that is calculated by deducting the liabilities…

Answered: Hlayisani Ltd acquired 60% of the…

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Hlayisani Ltd acquired 60% of the voting shares of the Mashele Ltd on 31 January 2014 for R65 000 when the
items of equity in the books of Mashele Ltd on that date were retained income of R45 000, revaluation surplus
of R10 000 and share capital of R58 000. Calculate the amount of goodwill/ (gain on bargain purchase) realized
by Hlayisani Ltd on 31 January 2014.
7
300
--
99-
10

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What is the relationship between Hlayisani Ltd and Mashele Ltd?
Select one:
a.
Venturer and joint venture.
b.
Investor and associate.
c.
Parent and subsidiary.
d.
Venturer and joint operation.

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