09-29-2009, 06:27 PM
I have the following question don't know how to solve
A Ltd acquired 100% holding (100 shares at $1 each) in B Ltd when the reserve of B was zero.
balance sheet of A and B as at 31-Mar-2008
A B
Investment in Sub 150
Net asset 50 120
Share Capital 200 100
reserves 0 20
On 1 Apr 2008, B Ltd made a right issue of 25 ordinary shares at $1 each
Balance of A and B at 31-Dec 2008
Investment in Sub 150
Net Asset 50 165
Share Capital 200 125
Reserves 40
Required prepare a consolidated balance as at 31 Dec 2008
Thanks for helping
A Ltd acquired 100% holding (100 shares at $1 each) in B Ltd when the reserve of B was zero.
balance sheet of A and B as at 31-Mar-2008
A B
Investment in Sub 150
Net asset 50 120
Share Capital 200 100
reserves 0 20
On 1 Apr 2008, B Ltd made a right issue of 25 ordinary shares at $1 each
Balance of A and B at 31-Dec 2008
Investment in Sub 150
Net Asset 50 165
Share Capital 200 125
Reserves 40
Required prepare a consolidated balance as at 31 Dec 2008
Thanks for helping