On 1 January 2007, KL Berhad acquired 90% of the ordinary voting shares (RM1.00 par value) of PJ Berhad with the issue of 162,000 of its ordinary voting shares (RM1.00 par value). The market value of KL Berhad on the dates of combination was RM2.00 per share. The balance sheets of the two companies immediately before the combination are as follows: KL Bhd PJ Bhd RM'000 RM'000 450,000 (50,000) 100,000 500,000 350,000 (25,000) 80,000 405,000 Non-current assets Accumulated depreciation Current assets 50,000 35,500 180,000 39,500 100,000 405,000 65,000 50,000 200,000 Non-current liabilities Current liabilities Share capital Share premium Retained earnings 185,000 500,000 Required: Prepare the consolidated balance sheet.
On 1 January 2007, KL Berhad acquired 90% of the ordinary voting shares (RM1.00 par value) of PJ Berhad with the issue of 162,000 of its ordinary voting shares (RM1.00 par value). The market value of KL Berhad on the dates of combination was RM2.00 per share. The balance sheets of the two companies immediately before the combination are as follows: KL Bhd PJ Bhd RM'000 RM'000 450,000 (50,000) 100,000 500,000 350,000 (25,000) 80,000 405,000 Non-current assets Accumulated depreciation Current assets 50,000 35,500 180,000 39,500 100,000 405,000 65,000 50,000 200,000 Non-current liabilities Current liabilities Share capital Share premium Retained earnings 185,000 500,000 Required: Prepare the consolidated balance sheet.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Answer question 1 and 2
Transcribed Image Text:On 1 January 2007, KL Berhad acquired 90% of the ordinary voting shares (RM1.00 par value) of PJ
Berhad with the issue of 162,000 of its ordinary voting shares (RM1.00 par value). The market value of KL
Berhad on the dates of combination was RM2.00 per share. The balance sheets of the two companies
immediately before the combination are as follows:
KL Bhd
PJ Bhd
RM'000
RM'000
450,000
(50,000)
100,000
500,000
350,000
(25,000)
80,000
405,000
Non-current assets
Accumulated depreciation
Current assets
50,000
35,500
180,000
39,500
100,000
405,000
65,000
50,000
200,000
Non-current liabilities
Current liabilities
Share capital
Share premium
Retained earnings
185,000
500,000
Required: Prepare the consolidated balance sheet.
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