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IF A acquired 80 of share of B company for 200000 and also paid his 100000 50 cent shares at market value of 3.5 per shares . when the retained earning of B was 10000 and share capital of B was 100000 . then what is the goodwill in the consolidated statement of financial position ?
Please do not simply set test questions and expect an answer. You must have an answer in the same book in which you found the question, and so you should ask about whatever it is in the answer you are not clear about. Then I will help you.
The total consideration is $200,000 + (100,000 x $3.50) = $550,000
The calculation of the goodwill is all explained in my free lectures, and is no different here than as always.
The total of the list of balances in valley’s payable ledger was $438900 at 30 June 2016. This balance did not agree with valley’s payables control account balance. The following errors were discovered.
1- A contra entry of $980 was recorded in the payables ledger control account, but not in the payables ledger.
2- The total of the purchase returns daybook was undercast by $1000
3- An invoice for$4344 was posted to the suppliers account as $4434
What amount should valley report in its statement of financial position for accounts payable at 30 June 20X6?
Please start a new thread when you are asking about a different topic 🙂
Also, please do not simply set test questions. You must have an answer in the same book in which you found the questions, so ask about whatever it is in the answer you are not clear about.
You are given the total of the list of balances in the ledger, and so you need to correct this to get the correct figure for the SOFP.
Item 1 has not been entered in the ledger – this will reduce the total of the balances.
Item 2 does not affect the ledger because it is a total from the daybook.
Item 3 does affect the ledger because they have posted the wrong amount. So you need to change the total by the difference.
All of the above is explained in my free lectures on Books of Prime Entry and on Control Accounts. The lectures are a complete free course for Paper F3 and cover everything needed to be able to pass the exam well.
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