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QUESTION 2 (20 marks) On 1 August 2021, Daa Berhad and Cat Berhad agreed to amalgamate. The statements of Financial Position of the two companies

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QUESTION 2 (20 marks) On 1 August 2021, Daa Berhad and Cat Berhad agreed to amalgamate. The statements of Financial Position of the two companies as at that date were as follows: Daa Cat Berhad Berhad RM RM Ordinary shares of RMI each 300,000 200,000 10% Preference shares 100,000 Reserve 15,000 25,000 Profit and loss 50,000 4.000 Account payables 50,000 24,000 515,000 253,000 Non-current Asset Goodwill Current Asset 300.000 10,000 205,000 515,000 150,000 2,000 101.000 253,000 A new company named DaaFly Sdn Bhd was formed to take over all the assets and liabilities of Daa Berhad and Cat Berhad on 1" August 2021. The authorized capital of DaaFly Sdn Bhd compromises 2,000,000 Ordinary shares of RM1 each and 500,000 5% Preference shares of RM1 each. The following are terms of agreement between the companies: 1) The purchase price for Daa Berhad as follows: i. 2 unit ordinary shares in DaaFly Sdn Bhd at par for every 1 unit ordinary share held in Daa Berhad. ii. 110,000 5% preference shares at par in DaaFly Sdn Bhd to discharge the preference share of Daa Berhad. iii. RM 10,000 8% Debentures in DaaFly Sdn Bhd 2) DaaFly Sdn Bhd to pay the liquidators of Cat Berhad RM300,000 ordinary shares at par in DaaFly Sdn Bhd and RM80,000 in cash. 3) The assets of Daa Berhad and Cat Berhad were valued at follow: Daa Berhad Cat Berhad RM RM Non Current Asset 550,000 290,000 Current Asset Book Value Book Value Trade payable Book Value Book Value 4) The liquidation expenses of Daa Berhad and Cat Berhad amounting RM2,000 and RM1,000 respectively paid by DaaFly. REQUIRED: a) Calculate the goodwill or bargain purchase of acquiring both companies. (5 marks) b) Prepare ledger of realization account to close the books of Dan Berhad and Cat Berhad. (7 marks) c) Prepare the statement of financial position of DaaFly Sdn Bhd immediately after combination (8 marks)

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