# 8.3 even below is the statement of financial position of Syarikat Raven. The owner, Mr Ravi, has converted the sole proprietorship into a limited liability company. Syarikat Raven Statement of Financial Position as at 31 December x4 RM RM Capital Current liabilities 500,000 Trade payables 22,000 622,000 Non-current assets Plant and machinery (cost) Accumulated depreciation 400,000 (36,000) 364,000 Furniture and fittings (cost) 80,000 Accumulated depreciation (38,000) 42,000 406,000 Current assets Inventories 50,000 Trade receivables 64,000 Bank 2,000 116,000 622,000 Gimmik Sdn Bhd was incorporated to purchase the business of Syarikat Raven on 31 December x4. The terms of the sale and purchase of Syarikat Raven are as follows: Gimmick Sdn Bhd is to take over all the assets (except cash at bank) and liabilities of Syarikat Raven for RM650,000. Syarikat Raven has a homegrown brand which is not recognised in its financial statements but will be recognised by Gimmick. The consideration transferred is 100,000 fully paid preference shares valued at RM100,000 and 500,000 fully paid ordinary shares of RM1.10 per share in Gimmick Sdn Bhd. The fair values of the assets on 31 December x4 are: RM Plant and machinery 340,000 Furniture and fittings 40,000 Inventories 60,000 Trade receivables 60,000 Brand 100,000 The liquidation expenses of RM1,000 are to be paid by Syarikat Raven. Required: 1. Calculate the goodwill on business purchase. il. Close the books of Syarikat Raven (journal entries). It. Prepare ledger entries to record the transactions in the books of Gimmick Sdn Bhd. W. Prepare the initial statement of financial position of Gimmick Sdn Bhd. Scanned with CamScanner8.4 Given below is the statement of financial position of Nuts and Bolts, a partnership. Nuts and Bolts Statement of Financial Position as at 31 December x1 RM'000 RM'000 300,000 Capital 200,000 500,000 Mr Nuts Mr Bolts Current liabilities 20,000 Trade payables 520,000 480,000 Non-current tangible assets (60,000) 420,000 Accumulated depreciation Current assets 60,000 Inventories 30,000 Trade receivables 10,000 Bank 100,000 520,000 Hammer Bhd was registered with ordinary shares to take over the business of Nuts and Bolts from 1 January x2. Mr Nuts and Mr Bolts are the major shareholders of the new company. They subscribed for 2 million ordinary shares each in Hammer Son Bhd, payable immediately in cash. The shares are valued at RM1 per share. The sale and purchase agreement states that: The new company is to take over all the non-current assets and inventories of the partnership. The assets are to be taken over at the following values: RM'000 Non-current tangible assets 500,000 Inventories 70,000 Additional information: a. Nuts and Bolt was given a special licence free of charge to maintain street lights by the government. This was not recognised as an asset by Nuts and Bolts. Its fair value was RM50,000,000. b. The new company made an issuance of 700 million fully paid ordinary shares at RM1 per share to the partnership as purchase consideration. C. The new company will assist the partnership to collect unpaid debts and pay the creditors. d. Bad debts of RM4,000,000 were incurred on trade receivables. e . Mr Nuts and Mr Bolts will share profits and losses equally and have agreed that any cash remaining on liquidation of their partnership should be distributed between them according to the ratio of their last agreed capital. Required: i. Prepare the journal entries to close the books of the partnership. li. Prepare ledger accounts to open the books of the new company. ili. Prepare the statement of financial position of Hammer Bhd immediately after the purchase of Nuts and Bolts. Scanned with CamScannerStatements of Financial Position at at 31 December x5 Micro Mini RM RM Research and development 4,000 Non-current assets 400,000 600,000 Current assets 200,000 240,000 604,000 840,000 Ordinary shares 600,000 600,000 Retained profit/(loss) (100,000) 160,000 500,000 760,000 Liabilities 104,000 80,000 604,000 840,000 Number of ordinary shares 600,000 600,000 A company named Computer Systems Bhd was formed to take over the businesses of Micro Son Bhd and Mini Sdn Bhd from 31 December. x5. Computer Systems Bhe took over all the assets and liabilities of Micro and Mini. techover The assets were taken over at the following values: Micro Mini RM RM Research and development Nil Non-current assets 420,000 640,600 Current assets 160,000 206,000 The considerations transferred were RM440,000 to Micro and RM900,000 to Mini, discharged with the issuance of fully paid ordinary shares in Computer Systems Bhd. The shares of Computer Systems Bhd were valued at RM1.25)per share 1340 000 x 025 Required: 4 3 35 000 . Calculate the amount of goodwill on business combination. Prepare ledger accounts to close the books of Micro San Bhd. miniting Prepare the journal entries to record the purchase acquisition in the books of Computer Systems End. W. Prepare the initial statement of financial position of Computer Systems Bhd. 4 40 x 1.25 guidry mewbe P/L 100." 0/s . 600' Gov 920. " 0/S -FSA In M/m 1440' R/A 860 020 1460 000 1460 020 Scanned with CamScanner8.6 Colour Bhd was formed to acquire all the assets and liabilities of Blue Sdn Bhd and Red Son Bho as at 31 December in The following are the statements of financial position of Blue Sdn Bhd and Red Son Bhd as at 31 December in Blue Red RM RM 32,000 32090 Goodwill 600,000 400,000 Non-current assets 150,000 80,000 Current assets 782,000 480,000 632,000 420,000 Ordinary shares 100,000 106 000 100,000 preference shares 30,000 10,000 Retained earnings 762,000 430,000 20,000 50,000 Liabilities 782,000 480,000 600,000 400,000 Number of ordinary shares Additional information: a. The registered capital of Colour Bhd consists of preference shares and ordinary shares. b. The fair values of the assets are as follows: Blue Red RM RM Non-current assets 650,000 420,000 Current assets 120,000 60,000 C. The consideration paid by Colour Bhd to Blue and Red is as follows: Blue Red RM RM To the preference shareholders Preference shares 1 10,000 To the ordinary shareholders Ordinary shares (valued at RM1 each) 660,000 450,000 All of the abovementioned shares were fully paid up. Preference = uptung. Required: on liquidation. i. Determine what a holder of 100 preference shares )and a holder of 500 ordinary shares of Blue would receive ii. Prepare the(journal entries to close the books of Blue and open the books of Colour Bhd. ili. Prepare the statement of financial position of Colour Bhd immediately after the amalgamation. Scanned with CamScanner