02-05-2006, 02:42 AM
PLZZ friends reply to the question as i am confused
THANX
A Ltd. (at 31 Dec2001)
Investment in B Ltd ( 10,000 shares) bought for Rs. 160,000 (now the market value of share is Rs.20 per share)
B Ltd (at 31 Dec 2001 )
Ordinary share capital (100,000 shares of 10 each) Rs. 1,000,000
Accumulated Profit Rs. 30,000
I want to know
1. what amount should we write in Balance Sheet of A in Investment Account
2. how much would be the Goodwill and why (because the problem I tried to solve have calculation as to Good will is => actual price for buying less (par value of invested shares + same proportion of accumulated profit) = Goodwill
3. the third problem is whether we record investment on market value or the buying price
THANX
A Ltd. (at 31 Dec2001)
Investment in B Ltd ( 10,000 shares) bought for Rs. 160,000 (now the market value of share is Rs.20 per share)
B Ltd (at 31 Dec 2001 )
Ordinary share capital (100,000 shares of 10 each) Rs. 1,000,000
Accumulated Profit Rs. 30,000
I want to know
1. what amount should we write in Balance Sheet of A in Investment Account
2. how much would be the Goodwill and why (because the problem I tried to solve have calculation as to Good will is => actual price for buying less (par value of invested shares + same proportion of accumulated profit) = Goodwill
3. the third problem is whether we record investment on market value or the buying price
