COMPANY ACCOUNTING.

Running head: COMPANY ACCOUNTING
Company Accounting
Name of the Student:
Name of the University:
Author’s Note:

1COMPANY ACCOUNTING
Table of Contents
Answer to question 1:......................................................................................................................2
Answer to question 2:......................................................................................................................3
Answer to question 3:......................................................................................................................4
Bibliography:...................................................................................................................................5

2COMPANY ACCOUNTING
Answer to question 1:
Business Acquisition Analysis
Ordinary Share Capital 13,000
Free Reserve 5,000
Retained Profit 4,050
Total book value of net assets 22,050
Fair Value Adjustments:
Plant 1,000
Land 2,000
Inventories 800 3,800
Unrecorded Liabilities:
Brand Value 1,200
Unrecorded Liabilities (1,500) (300)
Fair value of identifiable net assets 25,550
Less: Purchase Consideration Transferred 24,600
Gain on Acquisition 950
Goodwill appearing in the balance
sheet 500
Net Gain on bargain purchase 450