Marie Bhd acquired 80% of Donny Bhd ordinary share capital on 1 January 2019. As at 31 December 2019, extracts from their individual statements of financial position showed: Accounts Marie Bhd (RM) Donny Bhd (RM) Current assets: Receivables 105,000 40,000 Current liabilities: Payables 90,000 21,000 As a result of trading during the year, Marie Bhd’s receivables balance included an amount due from Donny Bhd of RM5,000. Required: Explain the amount to be shown as the consolidated figure for receivables and payables. Please show your calculation.
Marie Bhd acquired 80% of Donny Bhd ordinary share capital on 1 January 2019. As at 31 December 2019, extracts from their individual statements of financial position showed: Accounts Marie Bhd (RM) Donny Bhd (RM) Current assets: Receivables 105,000 40,000 Current liabilities: Payables 90,000 21,000 As a result of trading during the year, Marie Bhd’s receivables balance included an amount due from Donny Bhd of RM5,000. Required: Explain the amount to be shown as the consolidated figure for receivables and payables. Please show your calculation.
Intermediate Accounting: Reporting And Analysis
3rd Edition
ISBN:9781337788281
Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach
Publisher:James M. Wahlen, Jefferson P. Jones, Donald Pagach
Chapter13: Investments And Long-term Receivables
Section: Chapter Questions
Problem 18P
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100%
Marie Bhd acquired 80% of Donny Bhd ordinary share capital on 1 January 2019. As at 31 December 2019, extracts from their individual
Accounts | Marie Bhd (RM) | Donny Bhd (RM) |
Current assets: Receivables | 105,000 | 40,000 |
Current liabilities: Payables | 90,000 | 21,000 |
As a result of trading during the year, Marie Bhd’s receivables balance included an amount due from Donny Bhd of RM5,000.
Required:
Explain the amount to be shown as the consolidated figure for receivables and
payables. Please show your calculation.
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