Exam (elaborations)
Class test prep on consolidate
- Institution
- University Of The Western Cape (UWC)
It's a document that assist to prepare for the exams on consolidates topics
[Show more]
Seller
Follow
Content preview
FIA242 Class Test 2Lucky Ltd acquired 80% of the shares and voting rights over Sand Ltd on 1
January 2019 for R1 000 000, which gives them 80%of the voting rights. On
acquisition date Sand Ltd’s trial balance reflected its equity as consisting of:
Share capital: R192 000; and
Retained earnings: R780 000.
All Sand Ltd’s assets and liabilities were considered to be fairly valued on date of
acquisition. Non-Controlling interest is measured at fair value amounting to
R180 000. The following are the extract separate list of balances of each entity
ending 31 December 2021:
Extract of the List of Balance as at 31
December 2021 Lucky Ltd Sand Ltd
(2 560 000
Share capital ) (192 000)
(2 952 000
Retained earnings: 1 January 2021 ) (1 032 000)
(1 680 000
Loan liability ) (623 280)
(1 024 000
Accounts payable ) (384 000)
(8 960 000
Revenue ) (2 016 000)
Cost of sales 4 340 000 480 000
Depreciation 1 280 000 716 400
Telephone expenses 640 000 175 680
Salaries and wages expense 806 400 86 400
Interest expense 448 000 9 600
Taxation expense 768 000 38 400
Dividends declared 297 600 0
Investment in Sand Ltd 1 000 000 0
Machinery (carrying value) 0 1 152 000
Furniture (carrying value) 4 480 000 1 329 600
Loan asset 1 152 000 0
Inventories 1 024 000 96 000
The benefits of buying summaries with Stuvia:
Guaranteed quality through customer reviews
Stuvia customers have reviewed more than 700,000 summaries. This how you know that you are buying the best documents.
Quick and easy check-out
You can quickly pay through EFT, credit card or Stuvia-credit for the summaries. There is no membership needed.
Focus on what matters
Your fellow students write the study notes themselves, which is why the documents are always reliable and up-to-date. This ensures you quickly get to the core!
Frequently asked questions
What do I get when I buy this document?
You get a PDF, available immediately after your purchase. The purchased document is accessible anytime, anywhere and indefinitely through your profile.
Satisfaction guarantee: how does it work?
Our satisfaction guarantee ensures that you always find a study document that suits you well. You fill out a form, and our customer service team takes care of the rest.
Who am I buying this summary from?
Stuvia is a marketplace, so you are not buying this document from us, but from seller rhungulanikhoa. Stuvia facilitates payment to the seller.
Will I be stuck with a subscription?
No, you only buy this summary for R149,33. You're not tied to anything after your purchase.
Can Stuvia be trusted?
4.6 stars on Google & Trustpilot (+1000 reviews)
53022 documents were sold in the last 30 days
Founded in 2010, the go-to place to buy summaries for 14 years now