Forums › Ask ACCA Tutor Forums › Ask the Tutor ACCA FR Exams › December 2014 exam consolidation qn on Plastik
- This topic has 8 replies, 2 voices, and was last updated 7 years ago by MikeLittle.
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- May 19, 2016 at 4:05 am #315715
In the suggested answers, For the FV of net assets working, how to get $2000 for retained earnings under at acquistion date.
May 19, 2016 at 6:47 am #315722At the year end retained earnings are $3,500.
That’s after adding on this year’s retained earnings of $2,000
So brought forward from last year must have been $1,500
The acquisition took place 3 months in to this year so 3/12 of this year’s profits were pre-acquisition = $500
Total pre-acquisition was therefore $1,500 + $500 = $2,000
OK?
May 19, 2016 at 8:13 am #315756Yes got it. Thanks alot.
May 19, 2016 at 8:48 am #315758For transaction (iv), to eliminate the interco balances. Shouldn’t we take
1200 – 400= 800
DR trade payables 800
CR trade receivables 800But in the suggested answer i realise they only minus 800 from trade payables. They didnt minus 800 from trade receivables. Why is this so ?
May 19, 2016 at 10:22 am #315775The answer deducts 1,200, 800 of which is cancelled against trade payables and the remaining 400 is deducted from Plastik’s overdraft
Let me ask you this ….. have you watched the lectures that cover accounting for in-transit items?
May 19, 2016 at 11:55 am #315790Nope i didnt.
May 19, 2016 at 12:03 pm #315796Why on Earth not?
The lectures are there to explain the course notes and the course notes are there to give you a solid basis for attempting the F7 exam!
There’s still time to watch the videos – I strongly recommend it
May 19, 2016 at 12:45 pm #315807I just watched it. It really helps. Thank you so much.
As for the consolidated SOFP , for share premium it is given as
4800 ×$2 = 9600Where did the $2 come from ?
Is it P’s share price $3 – par $1 = $2May 19, 2016 at 3:32 pm #315831“Where did the $2 come from ?
Is it P’s share price $3 – par $1 = $2” – yes, and that’s all explained by John in the F3 video lectures! - AuthorPosts
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