Blue Ray Bhd. acquired all the assets and liabilities of Sharp Bhd. on 1 July 2021. Given below are the statements of financial position of Blue Ray and Sharp Bhd. as at 1 July 2021:

	Blue Ray (RM’000)	Sharp (RM’000)
Non-Current Tangible Assets	400,000	230,000
Goodwill	50,000
Shares in Sharp (30,000)	40,000
	490,000	230,000
Current Asset	56,000	36,000
Total Assets	546,000	266,000
Current Liabilities	(40,000)	(20,000)
	506,000	246,000
Ordinary Share capital at RM1 ach	400,000	150,000
Retained Profits	106,000	96,000
	506,000	246,000

 

The acquisition was undertaken under the following terms:

1. Blue Ray agreed to issue 200,000,000 ordinary shares. It was agreed that the fair value of the shares of Blue Ray for the acquisitions is RM1.60.
2. Sharp will go into liquidation.
3. The fair value of the assets and liabilities of Sharp were estimated to be:

Tangible Assets                RM250,000,000

Current Assets                  RM36,000,000

Current Liabilities              RM20,000,000  

Required 

1. Show a journal entry to record the transactions in the books of Blue Ray Bhd.                                                   
2. Prepare the statement of financial position of Blue Ray Bhd immediately after the acquisition of Sharp Bhd.
3.                                                   
4. Prepare the statement of financial position of Blue Ray Bhd immediately after the acquisition of Sharp Bhd.
5. Prepare the statement of financial position of Blue Ray Bhd immediately after the acquisition of Sharp Bhd.

Answer rating: 100% (QA)

a Journal S No Particulars AmountRM in millions AmountRM in millions 1 Business Purchase RM320 Liqui... View the full answer