Trade and other payables 178,000 23,170 23,400 1,200 Taxation Total equity and liabilities 201.170 975,000 24,600 59,500 Additional information i. On 1 January 2015, Bedsam Ltd acquired 16,000 of Raddo Ltd's shares at a total cost of GHC29,000. At the date of acquisition, Raddo Ltd's retained earnings had a balance of GHC3,500. The fair values of the assets and liabilities approximated their carrying amounts except a piece of land (with a carrying amount of GHC2,000) which had a fair value of GHC2,500. This fair valuation adjustment has not yet been reflected in the separate financial statement of Raddo Ltd. ii. The investment income of Bedsam Ltd yet to be recognized by both companies relates to dividends to be received from the Raddo Ltd GHC200. ii. In 2017, Raddo Ltd sold goods to Bedsam Ltd at a mark-up of 20%. The goods cost Raddo Ltd GHC1,000 and one-half remained in inventory at the year end. Beolgon You are required to prepare the consolidated statement of finäncial position of Peticnee Ltd as at 31 December 2017.

Trade and other payables 178,000 23,170 23,400 1,200 Taxation Total equity and liabilities 201.170 975,000 24,600 59,500 Additional information i. On 1 January 2015, Bedsam Ltd acquired 16,000 of Raddo Ltd's shares at a total cost of GHC29,000. At the date of acquisition, Raddo Ltd's retained earnings had a balance of GHC3,500. The fair values of the assets and liabilities approximated their carrying amounts except a piece of land (with a carrying amount of GHC2,000) which had a fair value of GHC2,500. This fair valuation adjustment has not yet been reflected in the separate financial statement of Raddo Ltd. ii. The investment income of Bedsam Ltd yet to be recognized by both companies relates to dividends to be received from the Raddo Ltd GHC200. ii. In 2017, Raddo Ltd sold goods to Bedsam Ltd at a mark-up of 20%. The goods cost Raddo Ltd GHC1,000 and one-half remained in inventory at the year end. Beolgon You are required to prepare the consolidated statement of finäncial position of Peticnee Ltd as at 31 December 2017.

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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