B407F Week 4 Tutorial quesiton- supplementary

B407F Week 4 Tutorial quesiton- supplementary - B407F Week...

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B407F Week 4 Tutorial -Consolidated Financial Statements (1) - supplementary Question 1 Honey Limited (“Honey”) has acquired 80% share holdings in Sugar Limited (“Sugar”) on 1 January Year 1 financed by the issue of 2 million of $1 ordinary shares of Honey at $7 per share and $6 million in cash. The Statement of financial position of the companies at 31 December Year 1 were: Honey Sugar $’000 $’000 Non-current assets Freehold property 30,000 16,000 Fixtures and fittings 54,000 20,000 Investment in Sugar 6,000 - Current assets Inventory 9,000 5,000 Accounts receivables 7,000 3,400 Cash 12,000 1,450 Total assets 118,000 45,850 Capital and Reserves Ordinary shares of $1 each 35,000 12,000 Revaluation reserve 30,000 3,000 Other reserves - 2,900 Retained earnings 6,000 2,750 71,000 20,650 Current liabilities 11,000 5,200 Non-current liabilities 36,000 20,000 Total equity and liabilities 118,000 45,850 Additional information: (1) Honey’s investment has acquired when the reserves of Sugar were: 1
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$’000 Revaluation reserve 1,500 Other reserves 2,500
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This note was uploaded on 02/24/2012 for the course ACT 407 taught by Professor Mshui during the Fall '11 term at The Open University.

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B407F Week 4 Tutorial quesiton- supplementary - B407F Week...

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