The statements of financial position of H Ltd and S Ltd at 31 December 20*2 are...

 

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The statements of financial position of H Ltd and S Ltd at 31 December 20*2 are as follows: S Ltd $00 H Ltd $000 $000 $000 Non-current assets 2,300 3,000 3,000 Shares in S Ltd Current assets Inventory 1,000 1,200 Trade receivables 500 600 Current account with H Ltd 180 Cash 200 1,700 120 2,100 Current liabilities Trade payables (630) (100) _(300) 670 6,670 5,000 1,670 (250) Current account with S Ltd Dividend payable (300) 1.550 Total net assets 3.850 Ordinary share capital Retained earnings Total equity 2,500 1,350 6,670 3,850 The following information is also available: (a) H Ltd acquired 80% of the shares of S Ltd on 1 Jan. 20*2 when the retained earnings of S Ltd were $1,000,000. (b) On 30 Dec. 20*2, H Ltd sent a cheque to S Ltd for $50,000. This was not received by S Ltd until 2 Jan. 20*3. (c) On 31 Dec. 20*2, there were goods in transit sent by S Ltd to H Ltd valued at $30,000. (d) H Ltd has not incorporated any entries relating to the dividend receivable from S Ltd for 20*2. (e) 10% of the goodwill is to be written off as an impairment loss. Required: Prepare a consolidated statement of financial position for H Ltd at 31 Dec. 20*2, The statements of financial position of H Ltd and S Ltd at 31 December 20*2 are as follows: S Ltd $00 H Ltd $000 $000 $000 Non-current assets 2,300 3,000 3,000 Shares in S Ltd Current assets Inventory 1,000 1,200 Trade receivables 500 600 Current account with H Ltd 180 Cash 200 1,700 120 2,100 Current liabilities Trade payables (630) (100) _(300) 670 6,670 5,000 1,670 (250) Current account with S Ltd Dividend payable (300) 1.550 Total net assets 3.850 Ordinary share capital Retained earnings Total equity 2,500 1,350 6,670 3,850 The following information is also available: (a) H Ltd acquired 80% of the shares of S Ltd on 1 Jan. 20*2 when the retained earnings of S Ltd were $1,000,000. (b) On 30 Dec. 20*2, H Ltd sent a cheque to S Ltd for $50,000. This was not received by S Ltd until 2 Jan. 20*3. (c) On 31 Dec. 20*2, there were goods in transit sent by S Ltd to H Ltd valued at $30,000. (d) H Ltd has not incorporated any entries relating to the dividend receivable from S Ltd for 20*2. (e) 10% of the goodwill is to be written off as an impairment loss. Required: Prepare a consolidated statement of financial position for H Ltd at 31 Dec. 20*2,

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