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Homework answers / question archive / statements of financial position of Randy and Paula as at 31 December x2
statements of financial position of Randy and Paula as at 31 December x2. Questions 12.1 Equity and Liabilities 600,000 ordinary shares 400,000 ordinary shares Retained profit Liabilities Randy RM'000 800 Paula RM'000 500 200 250 50 1,100 720 620 Assets Non-current assets Investment in 360,000 ordinary shares of Paula Inventories Other current assets 450 550 60 40 1,100 50 50 720 Additional information: a. Randy bought the ordinary shares of Paula on 1 January x1 when the retained profit of Paula was RM100,000. b. In year x2, Randy sold RM50,000 (selling price) of inventories to Paula. Randy invoiced Paula for the goods to Paula at cost plus 25 percent. C. Paula still has RM25,000 (invoice value of these inventories. d. Paula owes. Randy RM6,000. Goodwill is impaired by 20 percent. Required: Prepare the consolidated statement of financial position as at 31 December x2. e.
Consolidated Balance Sheet Of Randy
for the year ended 31st, december X2
| Description | Amount |
| Assets | |
| Current Assets | |
| Inventories ( 60000+50000-5000) | 105000 |
| Other Current Assets ( 40000+50000-6000) | 84000 |
| Non-Current Assets | |
| Goodwill (10000-2000) | 8000 |
| Non-Current Assets (450000 + 620000) | 1070000 |
| Total Assets | 1267000 |
| Shareholders Equity and Liability | |
| Liability | |
| Liability (50000+20000-6000) | 64000 |
| Minority Interest | 70000 |
| Total Liability | 134000 |
| Shareholders Equity | |
| Ordinary Shares | 800000 |
| Consoloidated Profit | 333000 |
| Total | 1133000 |
Working Notes
Percentage of Holding = ( 360000 shares / 400000 shares ) X 100 = 90%
Minority Interest ( 100 - 90) = 10%
1)
Stetement showing the minority interest
| Description | Total | Randy Co. (90%) | Minority (10%) |
| Pre acquition profit | |||
| Retained Earnings ( 200000-100000) | 100000 | 90000 | 10000 |
| Post acquition profit (200000-100000) | 100000 | 90000 | 10000 |
| Share Capital | 500000 | ||
| Less: Acquired by Randy Co. | 450000 | ||
| Minority Interest | 50000 | 50000 | |
| Total | 70000 |
2) Statement Showing the Goodwill / Capital Reserve
| Description | Amount |
| Investment in Paula | 550000 |
| Less: Face value of Shares | 450000 |
| Less: Capital Profit | 90000 |
| Goodwill | 10000 |
3) Statement Showing the Consolidated P/L
| Description | Amount |
| Retained Profit | 250000 |
| Share from Paula | 90000 |
| Less: Unrealized profit | 5000 |
| Less: Impairment of Goodwill (10000 X 20/100) | 2000 |
| Total Profit | 333000 |
