Accounting Assignment: Business Combination and Financial Statements

This accounting assignment solution covers two questions related to business combinations and financial reporting. Question 1 focuses on the acquisition of Sam Ltd by Ben Ltd, detailing the fair value adjustments for assets and liabilities, the calculation of goodwill, and the preparation of relevant journal entries. It addresses depreciation, deferred tax, and the impact of a contingent liability. The solution includes the balancing payments and the adjustments to various accounts like share capital, reserves, and retained earnings. Question 2 presents a balance sheet and equity statement, with a focus on various assets, liabilities, and equity components. It provides a comprehensive overview of financial statement preparation and the impact of transactions on equity.