Mokwena Limited acquired 48% investment in Masibi Limited at R100 000. At the date of acquisition, which is 31 March 2016, Masibi Limited’s statement of financial position showed the following balances: Non-current assets R692 000 Current assets R44 000 Non-current liabilities R268 000 Current liabilities R218 000 Mokwena Limited applies equity accounting for all its investments in associates and joint ventures. The financial year-end for Mokwena Limited is on 31 March of each year. What is Mokwena Limited’s share of the net assets in Masibi Limited? Select one: a. R250 000 b. R353 280 c. R120 000 d. R100 000
Mokwena Limited acquired 48% investment in Masibi Limited at R100 000. At the date of acquisition, which is 31 March 2016, Masibi Limited’s statement of financial position showed the following balances: Non-current assets R692 000 Current assets R44 000 Non-current liabilities R268 000 Current liabilities R218 000 Mokwena Limited applies equity accounting for all its investments in associates and joint ventures. The financial year-end for Mokwena Limited is on 31 March of each year. What is Mokwena Limited’s share of the net assets in Masibi Limited? Select one: a. R250 000 b. R353 280 c. R120 000 d. R100 000
Mokwena Limited acquired 48% investment in Masibi Limited at R100 000. At the date of acquisition, which is 31 March 2016, Masibi Limited’s statement of financial position showed the following balances: Non-current assets R692 000 Current assets R44 000 Non-current liabilities R268 000 Current liabilities R218 000 Mokwena Limited applies equity accounting for all its investments in associates and joint ventures. The financial year-end for Mokwena Limited is on 31 March of each year. What is Mokwena Limited’s share of the net assets in Masibi Limited? Select one: a. R250 000 b. R353 280 c. R120 000 d. R100 000
Mokwena Limited acquired 48% investment in Masibi Limited at R100 000. At the date of acquisition, which is 31 March 2016, Masibi Limited’s statement of financial position showed the following balances:
Non-current assets R692 000
Current assets R44 000
Non-current liabilities R268 000
Current liabilities R218 000
Mokwena Limited applies equity accounting for all its investments in associates and joint ventures. The financial year-end for Mokwena Limited is on 31 March of each year.
What is Mokwena Limited’s share of the net assets in Masibi Limited?
Select one:
a. R250 000
b. R353 280
c. R120 000
d. R100 000
Definition Definition Financial statement that provides a snapshot of an organization's financial position at a specific point in time. It summarizes a company's assets, liabilities, and shareholder's equity, detailing what the company owns, what it owes, and what is left over for its owners. The balance sheet serves as a crucial tool to assess the financial health and stability of a company, as well as to help management make informed decisions about its future investments and financial obligations.
Expert Solution
Step 1
Value of net assets of masibi limited :
Net assets = (Fixed assets+ Non current assets + current assets) - (Non current liabilities + current liabilities )
Net assets = [(692 + 44) - ( 268+ 218)]
= 250
Therefore value of net assets of Masibi limited as on 31 St March 2016 is R 250
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