Bill acquired 75% of Ben and 30% of Weed when Ben's reserves were £16,000, and those of Weed were £4,000. Fair value of Ben's net assets at the time of acquisition amounted to £35,000. All company accounts are shown below. Balance Sheets at 31-Dec-20 Non-current assets Investment in Ben Investment in Weed Other Net Assets Bill 26,000 Ben Weed 9,000 6,000 30,000 12,000 10,000 37,000 21,000 78,000 46,000 27,000 Issued Share Capital 40,000 16,000 10,000 Retained Earnings 30,000 26,000 14,000 Profit/Loss 8,000 4,000 3,000 78,000 46,000 27,000 Required: For Ye-Dec-20 prepare 1) Group Balance Sheet 2) Group Income Statement 3) Reconcile group and company net assets
Bill acquired 75% of Ben and 30% of Weed when Ben's reserves were £16,000, and those of Weed were £4,000. Fair value of Ben's net assets at the time of acquisition amounted to £35,000. All company accounts are shown below. Balance Sheets at 31-Dec-20 Non-current assets Investment in Ben Investment in Weed Other Net Assets Bill 26,000 Ben Weed 9,000 6,000 30,000 12,000 10,000 37,000 21,000 78,000 46,000 27,000 Issued Share Capital 40,000 16,000 10,000 Retained Earnings 30,000 26,000 14,000 Profit/Loss 8,000 4,000 3,000 78,000 46,000 27,000 Required: For Ye-Dec-20 prepare 1) Group Balance Sheet 2) Group Income Statement 3) Reconcile group and company net assets
Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
Section: Chapter Questions
Problem 1PS
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