Pop and Mom Ltd bought 120,000 of the 200,000 issued ordinary 1 shares of Sonny Ltd for
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Pop and Mom Ltd bought 120,000 of the 200,000 issued ordinary £1 shares of Sonny Ltd for £300,000 on 31 July 20X4. Sonny Ltd financial statements are drawn up annually to 31 December. The balance sheet of Sonny Ltd on 31 December 20X3 showed a balance on the profit and loss account of £62,000. The profit and loss account of Sonny Ltd for the year ended 31 December 20X4 showed a profit of £69,000. No other reserves appear in either balance sheet. Calculate the figure for the goodwill to be shown in the consolidated balance sheet as at 31 December 20X4.
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Goodwill in a consolidated balance sheet arises when a company acquires another company for a price ...View the full answer
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Related Book For 
Frank Woods Business Accounting Volume 2
ISBN: 9780273693109
10th Edition
Authors: Frank Wood, Alan Sangster
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