On October 1, 2020, Haroon Limited (HL) acquired 85% of the share capital of Safeer Limited (SL). The profit for the year ended December 31, 2020 of SL was Rs. 5,760,000. Profits are deemed to accrue evenly over the year. At December 31, 2020, SL's statement of financial position represent equity share capital and retained earnings amounted to Rs. 32 million and 28.8 million, respectively. What were the net assets of SL on acquisition?
On October 1, 2020, Haroon Limited (HL) acquired 85% of the share capital of Safeer Limited (SL). The profit for the year ended December 31, 2020 of SL was Rs. 5,760,000. Profits are deemed to accrue evenly over the year. At December 31, 2020, SL's statement of financial position represent equity share capital and retained earnings amounted to Rs. 32 million and 28.8 million, respectively. What were the net assets of SL on acquisition?
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
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![On October 1, 2020, Haroon Limited (HL) acquired 85% of the share capital of Safeer Limited (SL). The
profit for the year ended December 31, 2020 of SL was Rs. 5,760,000. Profits are deemed to accrue evenly
over the year. At December 31, 2020, SL's statement of financial position represent equity share capital
and retained earnings amounted to Rs. 32 million and 28.8 million, respectively. What were the net assets
of SL on acquisition?](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F6e2ecb44-3acc-44a4-9a1e-0237508c1e1f%2Fa0498205-9547-4a04-b16a-b5a179feecd2%2F6zik4ql_processed.jpeg&w=3840&q=75)
Transcribed Image Text:On October 1, 2020, Haroon Limited (HL) acquired 85% of the share capital of Safeer Limited (SL). The
profit for the year ended December 31, 2020 of SL was Rs. 5,760,000. Profits are deemed to accrue evenly
over the year. At December 31, 2020, SL's statement of financial position represent equity share capital
and retained earnings amounted to Rs. 32 million and 28.8 million, respectively. What were the net assets
of SL on acquisition?
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