On 1 January 2020 Harleen Inc purchased 1,275 ordinary shares in Shresta Inc , paying £5,300 by cheque. At the time of purchase, Shresta Inc’s profit and loss account balance were £1,000 and share premium was £500. The following are the statement of financial positions of Harleen Inc and Shresta Inc: Statement of Financial Position as at 31 December 2020 Harleen Inc Shresta Inc Non-Current Assets £ £ £ £ Buildings 10 000 4000 Motor Vehicles 7000 900 Investment in Shresta Inc 5300 22300 4900 Current Assets Inventory 1200 800 Trade Receivables 1500 260 Bank 300 390 Cash 50 10 3050 1460 Current Liabilities Trade Payables 5600 800 (2550) 660 19750 5560 Non-Current Liabilities Loans 6000 1300 13750 4260 Capital and reserves £1 Ordinary Shares 6500 1500 Share premium 600 500 Revaluation Reserve 4500 - Profit for the year 2150 2260 13750 4260 (a) Calculate: (i) Goodwill on purchase consideratsion (ii) Post-acquisition profits (iii) Minority Interest at 31 December

On 1 January 2020 Harleen Inc purchased 1,275 ordinary shares in Shresta Inc , paying £5,300 by cheque. At the time of purchase, Shresta Inc’s profit and loss account balance were £1,000 and share premium was £500. The following are the statement of financial positions of Harleen Inc and Shresta Inc: Statement of Financial Position as at 31 December 2020 Harleen Inc Shresta Inc Non-Current Assets £ £ £ £ Buildings 10 000 4000 Motor Vehicles 7000 900 Investment in Shresta Inc 5300 22300 4900 Current Assets Inventory 1200 800 Trade Receivables 1500 260 Bank 300 390 Cash 50 10 3050 1460 Current Liabilities Trade Payables 5600 800 (2550) 660 19750 5560 Non-Current Liabilities Loans 6000 1300 13750 4260 Capital and reserves £1 Ordinary Shares 6500 1500 Share premium 600 500 Revaluation Reserve 4500 - Profit for the year 2150 2260 13750 4260 (a) Calculate: (i) Goodwill on purchase consideratsion (ii) Post-acquisition profits (iii) Minority Interest at 31 December

Intermediate Accounting: Reporting And Analysis

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 8MC

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On 1 January 2020 Harleen Inc purchased 1,275 ordinary shares in Shresta Inc , paying £5,300 by cheque. At the time of purchase, Shresta Inc’s profit and loss account balance were £1,000 and share premium was £500.

The following are the statement of financial positions of Harleen Inc and Shresta Inc:

Statement of Financial Position as at 31 December 2020

	Harleen Inc	Shresta Inc
Non-Current Assets	£	£	£	£
Buildings		10 000		4000
Motor Vehicles		7000		900
Investment in Shresta Inc		5300
		22300		4900
Current Assets
Inventory	1200		800
Trade Receivables	1500		260
Bank	300		390
Cash	50		10
	3050		1460
Current Liabilities
Trade Payables	5600		800
		(2550)		660
		19750		5560
Non-Current Liabilities
Loans		6000		1300
		13750		4260
Capital and reserves
£1 Ordinary Shares		6500		1500
Share premium		600		500
Revaluation Reserve		4500		-
Profit for the year		2150		2260
		13750		4260

(a) Calculate:

(i) Goodwill on purchase consideratsion

(ii) Post-acquisition profits

(iii) Minority Interest at 31 December

(iv) Consolidated Reserves at 31 December

(b) Prepare the consolidated Statement of financial positions at 31 December 2020 for Harleen Inc.

please send the calculatuion within 30 mins its urgent it is easy to calculate just prepare a balance sheet and show the workings of goodwill and other menstioned profits.. its urgent plss do not neglect

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