Hi Sir,
Hope you are well.
My question is on the consolidated statements on the mock exam.
According to my calculations retained earnings should be 243000.
RE of Alice: 189
Post acquisition retained earnings of Bertha 72
Pre acquisition retained earnings of Bertha (12)
Alice's share (0.90*60) 54
Therefore, 189+54 = 243000. However, the answer shows 233,000.
Also, just to confirm to calculate the receivable it is: 264+60-53=271000 where 53000 is the balance on the current account.
Appreciate your help.
Regards,
Munir
ACCA Forums
FARetained Earnings - consolidated statement
11y ago#1In future you must ask in the Ask the Tutor Forum if you want me to answer - this forum is for students to help each other.
The retained earnings figure is 233,000 because there is unrealised profit in inventory of 10,000 - this needs subtracting from Alice's retained earnings.
Your figure for receivables is correct.
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