Alpha paid 300 to acquire 240 shares in Beta on 1 April 2010 when: (a) Betas reserves

Question:

Alpha paid £300 to acquire 240 shares in Beta on 1 April 2010 when:

(a) Beta’s reserves stood at £40.

(b) Fair value of Beta’s land, which is not depreciated, was £100 more than the book value.

You are informed that as at 31 March 2012:

(i) Receivables reported by Alpha includes £30 due from Beta and Beta agrees with it.

(ii) Goodwill in Beta was valued at £62.

Required:

Prepare the Consolidated Statement of financial position as at 31 March 2012.

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Financial Accounting An Introduction

ISBN: 9780273737650

2nd Edition

Authors: Mr Barry Elliott, Mr Augustine Benedict

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Question Posted: Aug 29, 2023 09:58 AM

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Alpha paid 300 to acquire 240 shares in Beta on 1 April 2010 when: (a) Betas reserves

Question:

Statements of financial position as at 31 March 2012 Non-current assets Investment in Beta Current assets Ordinary shares of £1 each Reserves Current liabilities Alpha Beta £ £ 320 800 450 320 1,570 £ 900 455 215 1,570 - 180 500 £ 300 125 75 500

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Consolidated Statement of Financial Position as at 31 March 2012 Assets Noncur...View the full answer

Financial Accounting An Introduction

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