Question: The following is the extract from trial balance of G Limited, subsidiary of Y Limited for the year ended 31 December 2021. Dr Cr Inventory on hand: 31/12/2020 50 000 Sales 1025000 Purchases 350 000 Depreciation 25 000 Rent income 40 000 Dividend paid 11 000 Other expenses 300 000 Income tax expense 145 000 Additional information: 1. Y Limited acquired its interest in G limited on the 1 st May 2021. 2.The average monthly sales of G Limited accrued evenly throughout the year. 3. Included in the R25 000 of depreciation, R15 000 relates to the new equipment acquired after acquisition of G Limited. 4. G Limited has inventory on hand of R150 000 on the 31st December 2021. 5. Rent income was accrued to G Limited from the 1 st July 2021 6. Other expenses have accrued uniformly during the year. 7. There are no other income and expenses other than those evident on the above extract. Required Show allocation of statement of profit or loss items of G Limited for Pre acquisition and Post acquisition period.
Question:
The following is the extract from
Dr Cr
Inventory on hand: 31/12/2020 50 000
Sales 1025000
Purchases 350 000
Rent income 40 000
Dividend paid 11 000
Other expenses 300 000
Income tax expense 145 000
Additional information:
1. Y Limited acquired its interest in G limited on the 1 st May 2021.
2.The average monthly sales of G Limited accrued evenly throughout the year.
3. Included in the R25 000 of depreciation, R15 000 relates to the new equipment acquired after acquisition of G Limited.
4. G Limited has inventory on hand of R150 000 on the 31st December 2021.
5. Rent income was accrued to G Limited from the 1 st July 2021
6. Other expenses have accrued uniformly during the year.
7. There are no other income and expenses other than those evident on the above extract.
Required
Show allocation of statement of profit or loss items of G Limited for Pre acquisition and Post acquisition period.
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