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Question 3 Keriko Limited purchased the entire share capital of Kamega Limited on 30th June 2022. The fixed assets of Kamega Limited are considered to

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Question 3 Keriko Limited purchased the entire share capital of Kamega Limited on 30th June 2022. The fixed assets of Kamega Limited are considered to possess a fair value of Ksh. 486,000; debtors Ksh. 162,000; Stocks Ksh. 108,000 with no material differences expected on the remaining assets. Required: (a) Compute the goodwill arising on consolidation of these companies using: (i) Assets method (5 Marks) (ii) Equity method (5 Marks) (b) Prepare the consolidated statement of financial position of Keriko Limited and her subsidiary as at 30 th June 2022 accordingly (10 Marks) Ignore depreciation. (Total: 20 Marks)

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