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Sample Question Paper Corporate Accounting

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Added on  2020-05-28

Sample Question Paper Corporate Accounting

   Added on 2020-05-28

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Running Head: Corporate AccountingCorporate Accounting
Sample Question Paper Corporate Accounting_1
Corporate Accounting2QUESTION 1AmountShare capital150000Reserves10000retained earnings30000Dividend6000Goodwill5000Purchase consideration130000CarryingamountFairvaluePlant(Cost)9400096000Land8000095000Inventory2000026000At 1 July 2013Net Fair value of Identifiable Assets and Liabilities of Sam LtdEquity($150000 + $10000+ $30000)PlantAdd{$ 2000*(1-30%)}LandAdd{$ 15000*(1-30%)}InventoryAdd{$ 6000*(1-30%)}DatabaseAdd{$ 6000*(1-30%)}Damages payableSubtract{$ 9000*(1-30%)}GoodwillSubtract ($5000)=$199000Consideration Paid =$130000 – Dividend Receivable ($6000)$ 124000Capital Reserve= (Fair value – Consideration Paid)=($199000 - $124000)=$75000Recorded Goodwill=$ 5000Transfer to Capital reserve=$ 70000.
Sample Question Paper Corporate Accounting_2
Corporate Accounting3A. Worksheet entries as at 30 June 20171.Business Combination valuation entriesAccumulated depreciationDr26000PlantCr24000Deferred Tax liabilityCr 600Business combination valuation ReserveCr 1400(Being Depreciation and deferred tax liability recognised)Depreciation ExpenseDr 200Retained Earnings (01/07/16)Dr 600Accumulated DepreciationCr 800(1/10 x $2000p.a for 4 years)Deferred Tax LiabilityDr 240Income Tax ExpenseCr 60Retained EarningsCr 180(Being deferred Tax liability transferred)Amortisation Expense- DatabaseDr 1500Retained earnings (01/07/16)Dr 3150Income Tax ExpenseCr 450Transfer from Business Cr 4200Combination Valuation Reserve(Being database amortisation expenses transferred) Transfer from Business combination Valuation ReserveDr 7000Income Tax expenseDr 3000Damage ExpenseCr 7500GainCr 2500(Being Gain on damage expenses recognised)Actual impairment losses- GoodwillDr 7000Business Combination Valuation ReserveDr 2400GoodwillCr 9400(Being impairment loss on goodwill recognised)2. Pre-Acquisition Entries At 01/07/2013Retained Earnings (01/07/2013)Dr30000Share CapitalDr 150000ReserveDr10000Business Combination Valuation ReserveCr 66000
Sample Question Paper Corporate Accounting_3

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