Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

please help me answer all question will give you good rating Question 1 On 1 Jan 2020 Tender Berhad acquired 800,000 out of the 1,000,000

please help me answer all question will give you good rating

image text in transcribed

image text in transcribed

Question 1 On 1 Jan 2020 Tender Berhad acquired 800,000 out of the 1,000,000 ordinary share capital of Tiny Berhad for a consideration of RM1,700,000. The purchase consideration was with cash of RM340,000 and the balance was from an issuance of ordinary shares of Tender Berhad, At the date of acquisition, the fair value of the ordinary shares of Tiny Berhad was RM1,000,000. Its share premium was RM300,000, revaluation reserve was RM100,000, and retained earnings was RM400,000. The net assets of Tiny Berhad and the Non-Controlling Interest (NCI) were stated in their fair values. The statements of financial position for Tender Berhad and Tiny Berhad as at 31 December 2020 were as below: Tiny Berhad RM1000 Statement of Financial Position as at 31 December 2020 Tender Berhad RM'000 Non-current assets Property, plant and equipment 4,500.00 Investment in Tiny Berhad 1,700.00 Long-term loans to subsidiary 1,000.00 Current assets 3,700.00 10,900.00 3.100.00 1,900.00 5,000.00 Ordinary shares Share premium Revaluation reserve Retained profits Owners' equity Long-term loans Current liabilities 2,000.00 900.00 500.00 2,500.00 5,900.00 3,200.00 1,800.00 10,900.00 1,000.00 300.00 300.00 900.00 2.500.00 1,600.00 900.00 5,000.00 Additional information: 1 In the Statement of Financial Position of subsidiary, long-term loan of RM700,000 was from Tender Berhad. Tiny Berhad paid an interest of RM80,000 for this loan. On 31 December 2020, Tiny Berhad repaid RM300,000 of this loan. However, the cheque was received by Tender Berhad on 4 January 2021. 2 During the year, a property was revalued, and the revalued amount was reflected in the accounts of the subsidiary Required: i Calculate the percentage of ownership of Tender Berhad in the subsidiary company. ii. Compute the purchase consideration from cash and issue of new shares which Tender Berhad paid for the purchase of Tiny Berhad 111. Prepare the workings and journal entries with their narrations or reasons for the adjustments and eliminations to arrive at the consolidated accounts of Tender Berhad, iv. Present the Consolidated Statement of Financial Position of Tender Berhad and its subsidiary

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

More Books

Students also viewed these Accounting questions

Question

Explain walter's model of dividend policy.

Answered: 1 week ago