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Accounting: Consolidation, Treatment of Investments and Financial Statements

   

Added on  2023-06-03

14 Pages1290 Words328 Views
ACCOUNTING 1
ACCOUNTING

ACCOUNTING 2
Contents
Answer 1:...................................................................................................................................3
Answer 2:...................................................................................................................................4
Answer 3:...................................................................................................................................6
Answer 4:...................................................................................................................................8
References:...............................................................................................................................11

ACCOUNTING 3
Answer 1:
The following are the desired calculations:
Part a:
When consolidation is not done
Particulars Debit Credit
01.07.201
7 Investment in Fry Ltd 50,000.00
Cash 50,000.00
01.07.201
8 Cash 24,000.00
Investment in Fry Ltd 24,000.00
01.07.201
9 Cash 4,500.00
Investment in Fry Ltd 4,500.00
01.07.201
9 Cash 3,000.00
Investment in Fry Ltd 3,000.00
Part b
When consolidation is done
Particulars Debit Credit
01.07.201
7 Share Capital 9,000.00
Retained earnings
36,000.0
0
Goodwill 5,000.00

ACCOUNTING 4
To Investment in Fry
Ltd
50,000.0
0
01.07.201
8 Cash
24,000.0
0
Profit and Loss
24,000.0
0
01.07.201
9 Cash 4,500.00
Profit and Loss 4,500.00
01.07.201
9 Cash 3,000.00
Profit and Loss 3,000.00

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