30 Parentis exam kits

Home Forums Ask ACCA Tutor Forums Ask the Tutor ACCA F7 Exams 30 Parentis exam kits

This topic contains 1 reply, has 2 voices, and was last updated by Avatar of MikeLittle MikeLittle 3 years, 5 months ago. This post has been viewed 44 times

Viewing 2 posts - 1 through 2 (of 2 total)
  • Author
    Posts

  • avatar
    nadir
    Participant
    • Topics: 64
    • Replies: 39

    See BPP exam kits number 30 Parentis(2.5 6/07) see its answer, see the consolidated statement of financial position the Equity shares why has it added 75???
    PLEASE REPLY
    Thanks in advance


    Avatar of MikeLittle
    MikeLittle
    Participant
    • Topics: 0
    • Replies: 5493

    working 2 tells you! P issued $75,000 worth of shares in payment for the subsid. at a value of 75 cents each. $75,000 worth of shares = 300,000 shares at a premium of 50 cents per share means we need to increase share capital by $75,000 and increase share premium by $150,000. This gives a total consideration ( in the form of shares ) of $225,000. The question specifies, top paragraph, that only the loan note has been recorded and the share element of the purchase consideration has NOT yet been recorded

Viewing 2 posts - 1 through 2 (of 2 total)

You must be logged in to reply to this topic.