Please answer all the questions

Given below are the comparative financial statements for Sime Bhd. and Darby Bhd. as at 31 On 1st April 2018, both companies were agreed that Sime Bhd was to acquire Darby Bhd on the following terms: 1. Sime Bhd was to purchase all assets and liabilities in Darby Bhd during the date of acquirement. 2. RM10,000 of liquidation expenses of Darby Bhd was paid by Sime Bhd. 3. The purchase considerations are: i. 9% preference shares in Sime Bhd of RM1 each, at RM335,000 ii. RM686,000 fully paid ordinary shares in Sime Bhd valued at RM1.40 each. iii. 7% debentures at RM70,000 4. The fair value of the assets taken over for Plant and machinery RM240,500, account receivables RM120,000 and inventories RM110,000. Required Answer the following questions. Show all your workings and round-up to the nearest figures. (a) Calculate the goodwill of acquiring Darby Bhd. ( 3 marks) (b) Prepare journal entries to close the books of Darby Bhd. ( 8 marks) (c) Prepare journal entries to record the absorption of Darby Bhd. in the books of Sime Bhd. (5 marks) (d) Prepare the Statement of Financial Position of Sime Bhd. immediately after the absorption has taken place. (4 marks) Given below are the comparative financial statements for Sime Bhd. and Darby Bhd. as at 31 On 1st April 2018, both companies were agreed that Sime Bhd was to acquire Darby Bhd on the following terms: 1. Sime Bhd was to purchase all assets and liabilities in Darby Bhd during the date of acquirement. 2. RM10,000 of liquidation expenses of Darby Bhd was paid by Sime Bhd. 3. The purchase considerations are: i. 9% preference shares in Sime Bhd of RM1 each, at RM335,000 ii. RM686,000 fully paid ordinary shares in Sime Bhd valued at RM1.40 each. iii. 7% debentures at RM70,000 4. The fair value of the assets taken over for Plant and machinery RM240,500, account receivables RM120,000 and inventories RM110,000. Required Answer the following questions. Show all your workings and round-up to the nearest figures. (a) Calculate the goodwill of acquiring Darby Bhd. ( 3 marks) (b) Prepare journal entries to close the books of Darby Bhd. ( 8 marks) (c) Prepare journal entries to record the absorption of Darby Bhd. in the books of Sime Bhd. (5 marks) (d) Prepare the Statement of Financial Position of Sime Bhd. immediately after the absorption has taken place. (4 marks)