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X Ltd is the parent company to Y Ltd has acquired 80% (320,000 units) in Y Ltd on 1 September 2019. The following information was
- X Ltd is the parent company to Y Ltd has acquired 80% (320,000 units) in Y Ltd on 1 September 2019. The following information was extracted from the statements of financial position of X Ltd and Y Ltd as at 30 September 2020:
| X Ltd | Y Ltd |
Equity Ordinary shares 4% Preference shares 7% Debentures |
2,000,000 600,000 200,000 |
500,000 250,000 120,000 |
|
|
|
Investment in Y Ltd: Ordinary shares (80%) Preference shares (50% Debentures (40%) |
2,800,000 125,000 48,000 |
|
You were given the information that in August 2020, X Ltd has declared 2% ordinary shares dividends and half year preference shares dividends. Y Ltd has declared 5cents/unit ordinary shares dividends, half year preference shares dividends. Both companies have not accrued the dividends and the full year debenture interest.
- Determine the dividends payables and interest payables for X Ltd and Y Ltd
- Determine the dividends receivables and interest receivables due from Y Ltd for X Ltd
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