- This topic has 9 replies, 2 voices, and was last updated 9 years ago by
.
- Posts
in the mock exam (opentuition) the account of downton plc for the year ended 31 december 2013… what is the non-current asset acquisition figure?
i have no idea how the answer is 52200.. do you have access to this or should i write the entire sofp and sopl here? thanks
similarly the Alice bought 90% of the equity share capital of Bertha two years ago on 1 July 2012, when the retained earnings of Bertha stood at $12,000_
Attached are the Statements of financial position of both Alice and Bertha at 30 June 2014 (click on the statement to enlarge)
During the year Alice had transferred goods to Bertha for $45,000 – this figure includes a mark-up of 50%. Two thirds of these goods remained in inventory at the year end_ The balance on the current account between Alice and Bertha was $53,000 at the year end.
The fair value of the non-controlling interest at the date of acquisition was $10,000.
You are required to prepare a Consolidated statement of financial position.required to calculate the NCI..
i am not sure why they have not deducted the purp from remaining inventory??
Please – you must ask in the Ask the Tutor Forum in future if you wish me to answer.
Also, have you watched our free lecture on Statements of Cash Flows?? (If not, then why not? 🙂 )
The total at the start of the year was 32,000. There is deprecation of 8,200 for the year – this would reduce is to 23,800. There has been a revelation during the year (see the revelations reserve) and to this would have increased the total by 8,000 to 31,800. The final total is 84,000 and so the difference of 52,200 must be the acquisitions.
It was Alice who sold the goods to Bertha and so it is Alice who will have taken the credit for the profit on the sales.
When we consolidate it is therefore Alice’s profit that is reduced by the PURP, which does not affect the NCI at all.
(The NCI would only be affected if Bertha had sold the goods to Alice)
the depreciation is written 8.2million thats where i went wrong so there is a misprint?
i also didnt even see the revaluation wow..
i think i need to watch the cash flows and inter-entity lectures again
thanks
last one and ill make a new topic…
Apple has her own business selling dolls to stores_ At 30 June 2013 she has a balance on her trade receivables of 62,900_
A balance of $2,000 due from X Co is considered irrecoverable and is to be written off_ Y Co was in financial difficulty and Apple wishes to provide an allowance for 60% of their balance of $1,600.
She has also decided to make a general allowance for receivables of 10% of her remaining trade receivable&
What is the allowance for receivables in her Statement of financial position at 30 June 2013?the answer is 6890 and i cant get this figure.
my calculations are 62,900 -2000 -(60%*1600) then times answer by 10% getting
5994add back irrecoverable debt 2000 and specific allowance (60%*1600) and i get 8954 as my final answer
There is no misprint at all – neither in the question nor in my answer to your earlier question!
There is depreciation of 8,200 and there has been a revaluation of 8,000.With regard to your second question, I told you before that you must start a new thread if you are asking about a different question. The reason is that we are not offering private tuition – our answers are to help everyone.
I also told you that if you want me to answer, then you must post in the Ask the Tutor Forum.I am therefore not going to answer you here – if you want me to answer then you must copy and paste your question in the Ask the Tutor Forum as a new thread.
you are correct i misread the figures i thought it was 3200 not 32000.
thanks again & i will copy and paste
- You must be logged in to reply to this topic.