Gasoline Limited is a chemical company that produces a wide variety of chemical products. WV Limited is a shipping company that transports oil and other liquid products around the world. WV recently signed an agreement to pay R21 450 000 on 2 October 2017 for a 100% shareholding in Gasoline Limited.

Gasoline Limited Statement of Financial Position as at 30 September 2017 is as follows:

Details	R	R
Assets
Non-current Assets		?
Property, plant and equipment	9 300 000
Investment property	3 745 000
Intangible assets	764 000
Current Assets		6 255 000
Inventory	5 470 000
Trade and other receivables	565 000
Income receivable	220 000
Total Assets		?
Equity and Liabilities
Equity		?
Equity and reserves	?
Non-current liabilities		619 500
Loan (long-term)	330 000
Debentures	289 500
Current liabilities		1 196 500
Trade and other payables	744 000
Bank overdraft	55 500
Shareholders for dividends	397 000
Total Equity and Liabilities		?

Gasoline Limited uses the Revaluation Model to measure all assets and items are at fair value at year-end. The market interest rate is 6,5% per annum.

Financial year-end for WV Limited and Gasoline Limited is 31 December 2017 and 30 September 2017 respectively.

Required:

Journalise all entries that relate to the Acquisition of Gasoline Limited. 

Answer rating: 100% (QA)

SOLUTION To journalize the entries related to the acquisition of Gasoline Limited by WV Limited we n... View the full answer