Prepare Working Paper and consolidated balance sheet of Parent and Subsidiary Company for purchase of 70% shares of company B and also prepare Working Paper and consolidated balance sheet of Parent and Subsidiary Company if company A purchases 100% shares of company B.
Prepare Working Paper and consolidated balance sheet of Parent and Subsidiary Company for purchase of 70% shares of company B and also prepare Working Paper and consolidated balance sheet of Parent and Subsidiary Company if company A purchases 100% shares of company B.
Prepare Working Paper and consolidated balance sheet of Parent and Subsidiary Company for purchase of 70% shares of company B and also prepare Working Paper and consolidated balance sheet of Parent and Subsidiary Company if company A purchases 100% shares of company B.
Prepare Working Paper and consolidated balance sheet of Parent and Subsidiary Company for purchase of 70% shares of company B and also prepare Working Paper and consolidated balance sheet of Parent and Subsidiary Company if company A purchases 100% shares of company B.
Transcribed Image Text:Company A acquired 70% shares of Company B at book value for Rs 196 (m) on January 1,
2019. The balance sheets of both the companies after acquisition are as follows:
Co. A
Co. B
(RS in thousand)
Assets:
(Rs in thousand)
Investment in Co. B
Other Assets
196,000
654,000
850,000
410,000
410,000
Total Assets
Liabilities & Stockholders' equity
Total Liabilities (current + long term)
Capital Stock
Additional paid in capital (share premium)
Retained earnings
Total Liabilities & Stockholders' equity
190,000
400,000
150.000
110,000
850,000
130,000
150,000
75,000
55,000
410,000
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
This question has been solved!
Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.
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.
