Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

On 2 July 2005, H Ltd. Purchased the entire issued ordinary share capital of 5 Ltd. On this date, 5 Ltd. had a retained income

image text in transcribed

On 2 July 2005, H Ltd. Purchased the entire issued ordinary share capital of 5 Ltd. On this date, 5 Ltd. had a retained income balance of R 4000 and no general reserve. Any purchase difference is to be attributed to the fixed Assets of S Ltd. On 30 June 2007, the trial Balances of the two companies were as follows: H Ltd. S Ltd. Share capital (R1 ordinary shares) 40 DDD 20 000 General reserve 5 000 10 000 34 000 Retained income 10 000 Accumulated depreciation 6 000 35 000 14 000 Fixed assets at cost Investments in 5 Ltd. 90 000 30 000 36 000 24000 90 000 Net current assets 21 000 35 000 Note: included in the net current assets of both companies is a dividend due by S Ltd. to H Ltd. of R 2000. Required Draw a consolidated balance sheet of H Ltd. and Subsidiary S Ltd. On 30 June 2007

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

Principles Of Accounting 2

Authors: OpenStax

1st Edition

0357366808, 9780357366806

More Books

Students also viewed these Accounting questions