C. The statements of financial position of Linus and Sally as at 31 December x5 are...

 

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C. The statements of financial position of Linus and Sally as at 31 December x5 are given below, Equity 45,000,000 ordinary shares 20,000,000 ordinary shares 4,000,000 preference shares Retained profit Liabilities 10 percent debentures Debenture interest payable Preference dividends payable Ordinary dividends payable Trade payables Assets Investments in Sally 12 million ordinary shares at cost 3 million preference shares RM40,000,000 10 percent debentures Non-current assets Current assets Receivables Bank Linus RM'000 500,000 Nil 110,000 610,000 Required: Prepare the consolidated statement of financial position as at 31 December x5. 35,000 35,000 680,000 130,000 60,000 40,000 360,000 40,000 50,000 680,000 Sally RM1000 200.000 80000 30,000 310.000 50,000 2,500 4.000 14.000 25,000 406 500 341,500 Additional information: a. When Linus acquired the investments in Sally, the retained profit of Sally had a credit balance of RM10 mil b. Sally has provided for the second half-year's debenture interest and final ordinary and preference dividends However, Linus has not recognised its share of debenture interest and dividends from Sally. The receivables of Linus include an amount of RM10 million due from Sally. However, on 30 December Sally had remitted RM2 million which was received by Linus on 2 January x6. 30,000 34,000 405,500 C. The statements of financial position of Linus and Sally as at 31 December x5 are given below, Equity 45,000,000 ordinary shares 20,000,000 ordinary shares 4,000,000 preference shares Retained profit Liabilities 10 percent debentures Debenture interest payable Preference dividends payable Ordinary dividends payable Trade payables Assets Investments in Sally 12 million ordinary shares at cost 3 million preference shares RM40,000,000 10 percent debentures Non-current assets Current assets Receivables Bank Linus RM'000 500,000 Nil 110,000 610,000 Required: Prepare the consolidated statement of financial position as at 31 December x5. 35,000 35,000 680,000 130,000 60,000 40,000 360,000 40,000 50,000 680,000 Sally RM1000 200.000 80000 30,000 310.000 50,000 2,500 4.000 14.000 25,000 406 500 341,500 Additional information: a. When Linus acquired the investments in Sally, the retained profit of Sally had a credit balance of RM10 mil b. Sally has provided for the second half-year's debenture interest and final ordinary and preference dividends However, Linus has not recognised its share of debenture interest and dividends from Sally. The receivables of Linus include an amount of RM10 million due from Sally. However, on 30 December Sally had remitted RM2 million which was received by Linus on 2 January x6. 30,000 34,000 405,500

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Consolidated statement of financial Position As at 31st December 5 Equity 45000000 ordinery shares ... View the full answer