I saw you subract retained earning 124000-60000=64000 why are you doing that and why I you putting dividend on consolidated group retained earnings last 40000*0.75*2/3*1*4.30=86000 but you did 20000*0.75*2*1 can i ask it the way to do it and dividend always you have to put on consolidated retained earnings and 26000*0.3 =7800 its not suppose to be 26000*70/100
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retained earnings Chapter 9
10y ago#1Deduct 60,000 from 124,000 to find retained earnings brought forward from last year. Then find how much of the 60,000 this year was achieved pre-acquisition
10y ago#2We're trying to eliminate the PROFIT, not the cost of the sales .... so the calculation of 26,000 x .3 is correct
Good evening Sir
So if it is profit margin you do in way when do we do 70/100 please help me iam getting confused
10y ago#4Yes ..... except we very rarely use "70/100"
70/100 is the COST of the intra-group inventory
What we are trying to eliminate is the unrealised profit in inventory so we would use the fraction 30/100
So that's why it's 30/100 x 26,000
All clear?
Good day Sir
The net assets of Agrippa a CGU.
The property , Plant and Equipment 240
Motor Vehicles 115
Allocated Goodwill 60
Purchased Brand name 120
Net current assets at net realisable 30
As a result of adverse publicity Agrippa has a recoverable amount of only 450. The brand name has been expertly valued of 95.
please help with this question
I said 450-60=390 and 390*95/(95+240+30)=101.50 please helpme
10y ago#6What has this got to do with "retained earnings Chapter 9"???
Please post it again and start a new thread!
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