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Consolidated Statement of Financial Position | Peace Ltd

   

Added on  2020-02-24

8 Pages1210 Words112 Views
(i)Acquisition Analysis as on 1st July-2015Particulars Amount ($)Share capital 30,000General reserves 15,000Other reserves 3,000Retained earnings 10,500Inventories [(28000-25000) x (1-30%)] 2,100Equipment [(16000-12000) x (1-30%)] 2,800Machinery [(8000-7500) x (1-30%)] 350Land [(12240-9240) x (1-30%)] 2,100Net fair value of identifiable assets and liabilities of Sublime Ltd. 65,850Net consideration paid= 68,600 Goodwill=Net consideration paid - Net fair value= 68,600 - 65,850 = 2,750Consolidation Worksheet entriesS.No.ParticularsDr./Cr. Amount (Dr.) Amount (Cr.) Pre - Acquisition Entry as on 1st July-20151Share capitalDr30,000 General reservesDr15,000 Other reservesDr3,000 Retained earningsDr10,500 BCVRDr7,350 GoodwillDr2,750 To Shares in Sublime Ltd68,600 (Acquisition of Sublime Ltd.)Business Combination Valuation Entries as on 30th June-2017
Consolidated Statement of Financial Position | Peace Ltd_1
2Accumulated Depreciation - EquipmentDr3,000 EquipmentDr1,000 To Deferred tax liability1,200 To BCVR2,800 (Equipment valued at fair value)3Depreciation exp - EquipmentDr500 Retained earnings (1st Jul-16)Dr500 Accumulated Depreciation - Equipment1,000 (Depreciation valued as per fair value of equipment)4Deferred tax liabilityDr300 To Income tax expense150 To Retained earnings (1st Jul-16)150 (Tax expense on depreciation)5Depreciation expense - machineryDr50 Gains/(losses) on sale of non-current assetsDr350 Retained earnings (1st Jul-16)Dr70 To Income tax expense120 To Transfer from BCVR350 (Sale of machinery)6Retained earnings (1st Jul-16)Dr3,000 To Retained earnings (1st Jul-16)900 To Transfer from BCVR2,100 (Sale of land)7Retained earnings (1st Jul-16)Dr3,000 To Retained earnings (1st Jul-16)Cr900 To Transfer from BCVRCr
Consolidated Statement of Financial Position | Peace Ltd_2
2,100 (Sale of inventory)Inter-entity sales of Inventory8Sales revenueDr6,000 To Cost of Sales6,000 (Inter entity sales of inventory)9Sales revenueDr1875To Cost of Sales1,375 To Inventory500 (Profit eliminated on Inter entity sales of inventory)Other entries10Other reservesDr3,000 To Share capital3,000 (Issuance of bonus shares)11Retained earnings (1st Jul-16)Dr1,050 Deferred tax assetDr450 To Equipment1,500 (Inter-entity sale of equipment)12Accumulated Dep - EquipmentDr225 To Depreciation - Equipment150 To Retained earnings (1st Jul-16)75 (Additional depreciation recorded on inter entity sale)13Income tax expenseDr45 Retained earnings (1st Jul-16)Dr23 To Deferred tax asset68 (Tax expense on depreciation)14Gains/(losses) on sale of non-current assetsDr
Consolidated Statement of Financial Position | Peace Ltd_3

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