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QUESTION 2 One Bhd acquired 75% of Two Sdn. Bhd.'s issued ordinary share capital on 1 January 2021 by paying cash of RM600,000. Two Sdn.
QUESTION 2 One Bhd acquired 75% of Two Sdn. Bhd.'s issued ordinary share capital on 1 January 2021 by paying cash of RM600,000. Two Sdn. Bhd is based in New Land and uses the NL$. On 1 January 2021, Two Sdn. Bhd. had a reserve of NL$500,000. The financial information of Two Sdn. Bhd. is as follows.:
Statements of Financial Position as at 31 December 2021 NL$'000 Ordinary shares 1,000 Retained profit b/f 500 Profit for the year 200 Non-current loan 100 Trade payables 100 1,900 Property, plant and equipment 1,500 Inventory 50 Trade receivables 250 Bank 100 1,900Statements of profit or loss for the year ended 31 December 2021: NL$'000 NL$'000 Revenue 1,000 Inventory on 1 January 2021 50 Purchases 400 450 Inventory on 31 December 2021 (50) Cost of sales (400) Gross profit 600 Administrative expenses 250 Depreciation 150 (400) Net profit 200 Rates of exchange NL$ RM 1 January 2018- date on which property, plant and equipment was acquired 4 1 January 2021 3 Average rate for year 2.5 31 December 2021 2 Purchase of inventory on 1 January 2021 2.25 Purchase of inventory on 31 December 2021 3 The functional currency of One Bhd is Ringgit MalaysiaStep by Step Solution
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