B) Prepare the general entries for the following statements. Jeppard Pty Ltd also had a brand Tommy

B) Prepare the general entries for the following statements.

 

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Jeppard Pty Ltd also had a brand Tommy Jeppard' that was not recorded by the company because it had been internally generated. It is valued at $50 000. Jeppard Pty Ltd had not recorded both the interest accrued on the loans amounting to $12 800 and annual leave entitlements of $23 000. Gus Sdn Bhd decided to acquire all the assets of Jeppard Pty Ltd except for cash and dividend receivable. In exchange for these assets, Gus Sdn Bhd agreed to provide: Three shares in Gus Sdn Bhd for every four A1 ordinary shares held in Jeppard Pty Ltd. The fair value of each Gus Sdn Bhd share was agreed to be $4.20; • A patent for oceanography mapping hardware and software to the owners of the A2 ordinary shares held in Jeppard Pty Ltd. (The patent is recognised by Gus Sdn Bhd at a carrying amount of $40 000. Its fair value is 88 000.); Cash of $11 000; and • • Sufficient additional cash to enable Jeppard Pty Ltd to pay off its liabilities. Note that dividend receivable was received on 18 June 2020 itself. (b) Prepare the general journal entries in the records of Gus Sdn Bhd at 15 June 2020 to record this business combination as per AASB 3/IFRS 3, based on the information above. Jeppard Pty Ltd also had a brand Tommy Jeppard' that was not recorded by the company because it had been internally generated. It is valued at $50 000. Jeppard Pty Ltd had not recorded both the interest accrued on the loans amounting to $12 800 and annual leave entitlements of $23 000. Gus Sdn Bhd decided to acquire all the assets of Jeppard Pty Ltd except for cash and dividend receivable. In exchange for these assets, Gus Sdn Bhd agreed to provide: Three shares in Gus Sdn Bhd for every four A1 ordinary shares held in Jeppard Pty Ltd. The fair value of each Gus Sdn Bhd share was agreed to be $4.20; • A patent for oceanography mapping hardware and software to the owners of the A2 ordinary shares held in Jeppard Pty Ltd. (The patent is recognised by Gus Sdn Bhd at a carrying amount of $40 000. Its fair value is 88 000.); Cash of $11 000; and • • Sufficient additional cash to enable Jeppard Pty Ltd to pay off its liabilities. Note that dividend receivable was received on 18 June 2020 itself. (b) Prepare the general journal entries in the records of Gus Sdn Bhd at 15 June 2020 to record this business combination as per AASB 3/IFRS 3, based on the information above.

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Gus Sdn Bhd General journals for acquisitions of Jeppard Pty Ltd as at 15 June 2020 as per IFRS3 IFRS 3 is international financial reporting standard ... View the full answer