Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

GreenEnergy Ltd. provided the following balance sheets as at 31 December 2023. Draw up the consolidated balance sheet as at that date. GreenEnergy Ltd Balance

GreenEnergy Ltd. provided the following balance sheets as at 31 December 2023. Draw up the consolidated balance sheet as at that date.

GreenEnergy Ltd Balance Sheet as at 31 December 2023

Assets

Amount

Investment in subsidiary (85,000 shares bought 31.12.2022)

$200,000

Fixed assets

$275,000

Current assets

$75,000

Total

$550,000

Liabilities and Equity

Amount

Share capital

$380,000

Profit and loss account (31.12.2022)

$60,000

Add Profit for 2023

$110,000

Total

$550,000

SolarWave Ltd Balance Sheet as at 31 December 2023

Assets

Amount

Fixed assets

$120,000

Current assets

$60,000

Total

$180,000

Liabilities and Equity

Amount

Share capital

$90,000

Profit and loss account (31.12.2022)

$10,000

Add Profit for 2023

$80,000

Total

$180,000

Requirement: Draw up the consolidated balance sheet for GreenEnergy Ltd. and its subsidiary as at 31 December 2023. Calculate the proportion of equity attributable to the parent company.

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

International Financial Reporting A Practical Guide

Authors: Alan Melville

6th edition

1292200743, 1292200766, 9781292200767, 978-1292200743

More Books

Students also viewed these Accounting questions