Advanced Financial Accounting Question 2022

Running head: ADVANCED FINANCIAL ACCOUNTING
Advanced Financial Accounting
Name of the Student:-
Name of the University:
Author’s Note:

1ADVANCED FINANCIAL ACCOUNTING
Table of Contents
Question No.1:.................................................................................................................................2
Requirement a:-...........................................................................................................................2
Requirement b:-...........................................................................................................................3
Requirement c:-...........................................................................................................................3
Question 2:-.....................................................................................................................................5
Question 3:-.....................................................................................................................................6
Consolidation Worksheet:-..........................................................................................................6
Workings:-...................................................................................................................................6
Bibliography:-..................................................................................................................................9

2ADVANCED FINANCIAL ACCOUNTING
Question No.1:
Requirement a:-
ACQUISITION ANALYSIS:
Particulars
Carryin
g
Amount
Fair
Value
Net Fair
Value
Net Fair Value of
Identifiable Assets &
Liabilities of Y Ltd.:
Contributed Equity
$200,00
0 0 $200,000
Retained Earnings
$138,00
0 0 $138,000
Revaluation Surplus $32,000 0 $32,000
Net Fair Value of Assets 0
Total NFVIAL of Y Ltd. A $370,000
Consideration Transferred B $289,000
Non-Controlling Interest
C = A x (1-
70%) $111,000
Total Value D=B+C $400,000
Goodwill E=D-A $30,000
Goodwill of Y Ltd.:
Fair Value of Y Ltd. F $370,000
NFVIAL of Y Ltd. G $370,000
Goodwill of Y Ltd. H=F-G $0
Recorded Goodwill I $0
Unnrecorded Goodwill J=H-I $0
Goodwill of L Ltd.:
Goodwill acquired K $30,000
Goodwill of Y Ltd. H $0

3ADVANCED FINANCIAL ACCOUNTING
Goodwill of L Ltd.-Control
Premium L=K-H $30,000
Requirement b:-
b) In the Books of L Ltd.
Journal Entries
Dr. Cr.
Date Particulars
Amou
nt
Amou
nt
1/7/2013 Pre-Acquisition Entries:
Contributed Equity A/c.
(1/7/13)
$140,0
00
Retained Earnings A/c.(1/7/13)
$96,60
0
Revaluation Surplus A/c.
(1/7/13)
$22,40
0
Goodwill A/c.
$30,00
0
Investment in Y Ltd.
A/c.
$289,0
00
Requirement c:-
c) In the Books of L Ltd.
Journal Entries
Dr. Cr.
Date Particulars
Amo
unt
Amou
nt
1/7/2013 Non-Controlling Interest:
Contributed Equity A/c.
(1/7/13)
$60,0
00
Retained Earnings A/c.(1/7/13)
$41,4
00
Revaluation Surplus A/c.
(1/7/13)
$9,60
0