Question 5

On 1/1/2017 Zamboor company purchased 100 % of Al Otaibi company by SR 500,000 , and paid SR 30,000 for commission and consulting expenses and SR 20.000 indirect expenses for registering. The balance sheet of Zamboor and Al Otaibi company on 31/12/2016 before of purchase was:

particulars	Zamboor	Al Otaibi (book value)	Al Otaibi (fair value )
Cash Account receivables Inventories	600,000 400,000 450,000	25,000 300,000 100,000	25,000 340,000 150,000
Total assets	1.450.000	425.000	515.000
Account payables Capital Add. Capital	200,000 700,000 550,000	50,000 200,000 175,000	65,000
Total liabilities	1.450.000	425.000

Requirements:

From the information mentioned above, Use purchase method to Prepare consolidated Balance Sheet at Date of Acquisition and fill in the blanks in the table of consolidated sheet.

Particulars	Zamboor	Al Otaibi (book value)	Consolidation adjustment Dr Cr		Consolidation financial
Cash Account receivables Inventories Goodwill Investment	400,000 450,000	25,000 300,000 100,000
Total assets	1.430.000	425.000
Account payables Capital Add. Capital	800,000 2,700,000 950,000	50,000 200,000 175,000
	1430000	425,000