P Limited obtained control with the acquisition of an 80% equity interest in the share capital of S Limited on 1 January 20.9 and paid R100 000 cash and transferred 10 000 ordinary equity shares in W Limited, with a market value of R4 per share, to settle the purchase price of R140 000 for the acquisition of an 80% interest.Identify the correct journal entries to be made in the separate accounting records of P Ltd Select one: a. Dr Investment in S Ltd R140 000 ,Cr Bank R100 000 Cr Investment in W Ltd R40 000 b. Dr Investment in S Ltd R140 000, Dr Investment in W Ltd R40 00, Cr Bank R180 000 c. Dr Investment in S Ltd R110 00 ,Cr Bank R11 000 d. Dr Investment in S Ltd R140 000, Cr Bank R140 000
P Limited obtained control with the acquisition of an 80% equity interest in the share capital of S Limited on 1 January 20.9 and paid R100 000 cash and transferred 10 000 ordinary equity shares in W Limited, with a market value of R4 per share, to settle the purchase price of R140 000 for the acquisition of an 80% interest.Identify the correct journal entries to be made in the separate accounting records of P Ltd Select one: a. Dr Investment in S Ltd R140 000 ,Cr Bank R100 000 Cr Investment in W Ltd R40 000 b. Dr Investment in S Ltd R140 000, Dr Investment in W Ltd R40 00, Cr Bank R180 000 c. Dr Investment in S Ltd R110 00 ,Cr Bank R11 000 d. Dr Investment in S Ltd R140 000, Cr Bank R140 000
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
Related questions
Question
P Limited obtained control with the acquisition of an 80% equity interest in the share capital of S Limited on 1 January 20.9 and paid R100 000 cash and transferred 10 000 ordinary equity shares in W Limited, with a market value of R4 per share, to settle the purchase price of R140 000 for the acquisition of an 80% interest.Identify the correct journal entries to be made in the separate accounting records of P Ltd
Select one:
a. Dr Investment in S Ltd R140 000 ,Cr Bank R100 000 Cr Investment in W Ltd R40 000
b. Dr Investment in S Ltd R140 000, Dr Investment in W Ltd R40 00, Cr Bank R180 000
c. Dr Investment in S Ltd R110 00 ,Cr Bank R11 000
d. Dr Investment in S Ltd R140 000, Cr Bank R140 000
Expert Solution
This question has been solved!
Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.
Step by step
Solved in 2 steps
Knowledge Booster
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.Recommended textbooks for you
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
Horngren's Cost Accounting: A Managerial Emphasis…
Accounting
ISBN:
9780134475585
Author:
Srikant M. Datar, Madhav V. Rajan
Publisher:
PEARSON
Intermediate Accounting
Accounting
ISBN:
9781259722660
Author:
J. David Spiceland, Mark W. Nelson, Wayne M Thomas
Publisher:
McGraw-Hill Education
Financial and Managerial Accounting
Accounting
ISBN:
9781259726705
Author:
John J Wild, Ken W. Shaw, Barbara Chiappetta Fundamental Accounting Principles
Publisher:
McGraw-Hill Education