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(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

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(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)

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