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Hi My Dear tutor ? have two questions
Stretcher business seasonal and 60% of its annual profit is made in the period 1 January to 30 June each year.
trial balance 30 June 2015
Re-at 1 July 2014-14000
for the year ended 30 June 2015-1000010000*40%=4000+14000=18000 at acquistion date but will 28000 be my date of Reporting figure and Post acqusition 10000?Again confused it I am sorry.
“Re-at 1 July 2014-14000
for the year ended 30 June 2015-1000010000*40%=4000+14000=18000 at acquistion date but will 28000 be my date of Reporting figure and Post acqusition 10000?Again confused it I am sorry.”
If retained earnings brought forward were $14,000 and retained earnings for the year were $10,000, then in my calculator that means that retained earnings carried forward were $24,000
So how do you manage to arrive at $28,000?
If retained earnings for the year ended 30 June, 2015 were $10,000 and 60% of those earnings were achieved in the period 1 January, 2015 to 30 June, 2015, how do you manage to arrive at $10,000 for the post acquisition period 1 January, 2015 to 30 June, 2015?
I’m having to guess here that the date of acquisition was 1 January, 2015 because, yet again, you have failed to give me all relevant information!
🙁
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