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Can you tell me why the deferred tax is debited with 2400 instead of being credited please? Usually deferred tax account is credited with this amount and the oci/rr is debited with same amount..
Can you tell me also which part of the note indicates that 2400 should be transferred from deferred tax account to revaluation reserve please?
Isn’t this the wrong actual entry made by Highwood which should have been reversed by:
Dr Receivables $10
Cr Admin $1.3
Cr Loan a/c $8.7 ?If the receivables are “sold” to EasyFinance and all the cash from receivables is collected by EasyFinance, what entries should be made to the balance of receivables in Highwood since the receivables won’t give money Highwood anymore?
Isn’t this the wrong actual entry made by Highwood which should have been reversed by :
Dr Receivables 10
Cr Adm 1.3
Dr Loan a/c 8.7 ?Isn’t this the wrong actual entry made by Highwood which should have been reversed by :
Dr Receivables 10
Cr Adm 1.3
Dr Loan a/c 8.7 ?When the sale is finally made, the goods are accounted for in the year of delivery or in the year of the actual sales?
For eg. The goods were delivered to the customer in November 2015 (with option to return) and the customer sold the goods in February 2016. Y/e for both companies is 31 December.Yes i understand that it is the ex shareholders of Sanford who are the recipient of the consideration and not Sanford plc.
Can we consider the loan note as a form of deferred consideration? Or vice versa?
When it says : “Premier acquired 80% of equity share capital in Sanford”, it means Premier bought 4000 shares in Sanford and now has to pay Sanford.
It says that the consideration consisted of ” a share exchange of 3 shares in Premier for every 5 acquired shares in Sanford”: it means Premier is giving away 2400 of his own shares to Sanford as part payment
It says ” and the issue of a $100 6% loan note for every 500 shares acquired in Sanford” : Premier will pay the remaining consideration of $800k at maturity date of the loan note issued by Premier
Am I wrong?
Yes!
In the Premier question, it says that the consideration consisted of an issue of a $100 6% loan note for every 500 shares acquired in Sanford.Here in Premier’s records, it would be :
Dr Investment in Sanford 6% loan note $800,000
Cr Cash $800,000In the books of Sanford
Dr Cash $800,000
Cr Long term liability 6% Loan note $800,000?Pandar is investing and Salva is giving a loan note in terms of documentary evidence you mentioned above, is this how it is?