Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Hi. Can anyone help me to solve this question? Do I need to multiply the subsidiary's values with 9/12? Please guide me on solving this.

Hi. Can anyone help me to solve this question? Do I need to multiply the subsidiary's values with 9/12? Please guide me on solving this.

image text in transcribedimage text in transcribed
asia purchased 50 percent of debentures of Rani on 1 January x4. Then on 1 April x4, Raja acquired an 80 percent Porest in the RM200, 000, 000 issued ordinary share capital of Rani and 60 million of the 100 million issued cumulative preference shares. Given below are extracts from the trial balance of the two companies as at 31 December x4. Raja Rani RM'000 RM'000 Turnover Cost of sales 600,000 500,000 (180,000) Gross profit (200,000) Operating expenses 420,000 300,000 (240,000) Operating profit before tax (190,000) Dividends from quoted investments 180,000 1 10,000 Debenture interest 12,000 15,000 Debenture interest from Rani (6,000) 3,000 Taxation 195,000 1 19,000 (40,000) (30,000) Profit for the year 155,000 89,000Additional information: a. Raja sold goods to Rani of RM40 million after 1 April x4. Raja sells to Rani at cost plus 331/3 percent. Of the goods purchased from Raja, one-quarter of the purchases remain in the closing inventory of Rani. b. Raja Rani RM'000 RM'000 Ordinary dividends paid in February x4 20,000 10,000 Preference dividends paid in February x4 5,000 Retained profit b/f at 1 January x4 30,000 (20,000) Required: i. Prepare the group's statement of profit or loss for the year ended 31 December x4. ii. Calculate the group retained profit as at 31 December x4. iii. Calculate the profit attributable to the non-controlling interest and the group retained profits if Rani paid the dividends in December x4

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_2

Step: 3

blur-text-image_3

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

Financial Accounting Tools for Business Decision Making

Authors: Jerry J. Weygandt, Paul D. Kimmel, Donald E. Kieso

5th Edition

9781118560952, 1118560957, 978-0470239803

More Books

Students also viewed these Accounting questions

Question

Were any of the authors students?

Answered: 1 week ago