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QUESTION 1 ( 3 0 Marks ) Dairy Ltd acquired 2 2 4 , 0 0 0 ordinary shares in Milky Ltd on 3 0
QUESTION Marks Dairy Ltd acquired ordinary shares in Milky Ltd on June The following represents the abridged statements of the Financial Position of the two companies on that date. Assets Dairy Ltd Zaire Ltd Noncurrent Property, plant, and equipment Investment in Milky Ltd at fair value Loan Milky Ltd Current assets Inventory Trade and other receivables Cash and cash equivalents Total Assets Equity and Liabilities Total Equity Ordinary shares @ c Retained Earnings Other components of equity Noncurrent liabilities LoanDairy Ltd Debentures Current liabilities Trade and other payables Bank Overdraft Total Equity and Liabilities Required: Prepare the proforma consolidation journal entries for the year ended June Marks Prepare the consolidated statement of the financial position of Dairy Ltd group as at June Comparatives are not required Marks Calculate the amount goodwillgain from bargain purchase if the consideration paid for the acquisition of Milky Ltd was R
QUESTION Marks
Dairy Ltd acquired ordinary shares in Milky Ltd on June The following represents the abridged
statements of the Financial Position of the two companies on that date.
Assets Dairy Ltd Zaire Ltd
Noncurrent
Property, plant, and equipment
Investment in Milky Ltd at fair value
Loan Milky Ltd
Current assets
Inventory
Trade and other receivables
Cash and cash equivalents
Total Assets
Equity and Liabilities
Total Equity
Ordinary shares @ c
Retained Earnings
Other components of equity
Noncurrent liabilities
LoanDairy Ltd
Debentures
Current liabilities
Trade and other payables
Bank Overdraft
Total Equity and Liabilities
Required:
Prepare the proforma consolidation journal entries for the year ended June Marks
Prepare the consolidated statement of the financial position of Dairy Ltd group as at June
Comparatives are not required
Marks
Calculate the amount goodwillgain from bargain purchase if the consideration paid for the acquisition of Milky Ltd was R
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