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Consolidation and Acquisition Analysis for Desklib

   

Added on  2022-10-09

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CONSOLIDATION
NAME OF STUDENT
NAME OF UNIVERSITY
Consolidation and Acquisition Analysis for Desklib_1

Acquisition analysis
1.a
Narration Journal entry Amount
1.a On investment in Sunny bank hill Ltd
Dr Investment In
SunnyBank Hill 700 000,00
Cr Cash 700 000,00
1.b Adjustment for fair value of the asset
Tabulation
Cost
75
000,00
less; Accumulated deprecation
25
000,00
Carrying amount
50
000,00
Add; adjusted difference of carrying
amount
20
000,00
Adjusted carrying amount
70
000,00
The adjustment required is to adjust
the fair value
Dr Asset in
Sunnybank hill 20 000,00
Cr Revaluation
surplus 20 000,00
Acquisition analysis
A
Investment in
Sunnybank hill 700 000,00
Share capital 300 000,00
Retained earnings 200 000,00
Revaluation surplus 36 000,00
B Net Assets 536 000,00
A-B
Goodwill on
acquisition 164 000,00
Consolidation and Acquisition Analysis for Desklib_2

Consolidation entries
Elimination
Consolidation as at
1st July 2019 Sunnybank
Sunnyba
nk hill Dr Cr
Consolidati
on
Assets -
Investment in
Sunnybank hill
700
000,00
700
000,00 -
Cash
700
000,00
700
000,00 -
Goodwill
164
000,00
164
000,00
Net assets
536
000,00
536
000,00
Differential
164
000,00
164
000,00 -
Totals
328
000,00
1 564
000,00
700
000,00
Equity
Share capital
300
000,00
300
000,00 -
Retained earnings
200
000,00
200
000,00 -
Revaluation surplus
36
000,00
36
000,00 -
Differential
700
000,00
700
000,00
Totals
1 236
000,00 -
700
000,00
Totals
1 564
000,00
1 564
000,00
2.
Sale of plant item
Sale of plant item to Sunnybank 55 000,00
Carrying cost 40 000,00
Surplus of carrying cost 15 000,00
Original cost 90 000,00
Estimated life 9 years
Depreciation per year(90,000/9 10 000,00
As item has depreciatied for 50,000 ,then it has been depreciated
for for 60 months
and was bought in 1 Jan 2022.If we less 5 years which means it was
bought in Jan 2017.
and will be fully depreciated in 1 Jan 2026 and has a useful life of
Consolidation and Acquisition Analysis for Desklib_3

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