Question
NovaTech Ltd. has the following balance sheets for 31 December 2023. Prepare the consolidated balance sheet for 31 December 2023. NovaTech Ltd Balance Sheet as
NovaTech Ltd. has the following balance sheets for 31 December 2023. Prepare the consolidated balance sheet for 31 December 2023.
NovaTech Ltd Balance Sheet as at 31 December 2023
Assets | Amount |
Investment in subsidiary (65,000 shares bought 31.12.2022) | $175,000 |
Fixed assets | $255,000 |
Current assets | $70,000 |
Total | $500,000 |
Liabilities and Equity | Amount |
Share capital | $350,000 |
Profit and loss account (31.12.2022) | $50,000 |
Add Profit for 2023 | $100,000 |
Total | $500,000 |
BlueWave Ltd Balance Sheet as at 31 December 2023
Assets | Amount |
Fixed assets | $90,000 |
Current assets | $60,000 |
Total | $150,000 |
Liabilities and Equity | Amount |
Share capital | $75,000 |
Profit and loss account (31.12.2022) | $10,000 |
Add Profit for 2023 | $65,000 |
Total | $150,000 |
Requirement: Prepare the consolidated balance sheet for NovaTech Ltd. and its subsidiary as at 31 December 2023. Determine the consolidated reserves.
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
Financial Accounting
Authors: J. David Spiceland, Wayne Thomas, Don Herrmann
3rd edition
9780077506902, 78025540, 77506901, 978-0078025549
