Answered step by step
Verified Expert Solution
Question
1 Approved Answer
(b) P Sdn Bhd, a company with subsidiaries, acquires 50,000 of the 200,000 RM1 ordinary shares in A Sdn Bhd for RM120,000 on 1 January
(b) P Sdn Bhd, a company with subsidiaries, acquires 50,000 of the 200,000 RM1 ordinary shares in A Sdn Bhd for RM120,000 on 1 January 2019. In the year to 31 December 2019, A Sdn Bhd earns profits after tax of RM48,000, from which it pays a dividend of RM12,000. Required: (i) Explain how will A Sdn Bhds result be accounted for in the individual and consolidated accounts of P Sdn Bhd for the year ended 31 December 2019. (6 marks) (ii) Prepare the relevant journal adjustment to record in the individual and consolidated accounts of P Sdn Bhd for the year ended 31 December 2019. (3 marks) (111)Show how P Sdn Bhd's investment in A Sdn Bhd would appear in the consolidated statement of Financial position at 31 December 2019. (2 marks) (b) P Sdn Bhd, a company with subsidiaries, acquires 50,000 of the 200,000 RM1 ordinary shares in A Sdn Bhd for RM120,000 on 1 January 2019. In the year to 31 December 2019, A Sdn Bhd earns profits after tax of RM48,000, from which it pays a dividend of RM12,000. Required: (i) Explain how will A Sdn Bhds result be accounted for in the individual and consolidated accounts of P Sdn Bhd for the year ended 31 December 2019. (6 marks) (ii) Prepare the relevant journal adjustment to record in the individual and consolidated accounts of P Sdn Bhd for the year ended 31 December 2019. (3 marks) (111)Show how P Sdn Bhd's investment in A Sdn Bhd would appear in the consolidated statement of Financial position at 31 December 2019. (2 marks)
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started